The end of the year is upon us and uncertainty still threatening, but there are some good things to look at this month. Let’s dive in!
Tariff Rates Drop for China!
President Trump and President Xi met in South Korea at the end of October to work on a trade agreement. While the trade agreement is still in the works, a truce has been made and the 20% fentanyl tariff on Chinese goods importing to the US has dropped to 10%.
Fees on Chinese-made ships arriving in US ports have been paused for one year, and China has paused its fees on US-made ships arriving at their ports. President Xi has promised to continue purchasing Soybeans from the United States and has put a one-year pause on rare earth export controls. The trade war is not done yet, but this is a promising start for both countries.
South Korea Gets a Deal as Well!
On October 30th, South Korea also made a deal with the USA. The 25% tariff on South Korean goods has been reduced to 15% starting immediately. In return, South Korea will be investing in US-built ships and has promised to invest more in the US economy.
OH Canada!
The tariff news is not so great for Canadian importers. An anti-tariff commercial aired on Canadian television last week, which sparked outrage from Washington with the threat of raising the now 35% fentanyl tariff to 45%. This has not been officially announced yet.
November GRI in Place
Ocean carriers have announced a GRI (general rate increase) in containers for November 1. An increase of $3,000 per 40’ container and $2,400 increase per 20’ container has been implemented starting November 1. It is common to see GRI’s this time of year as it is still peak shipping season. Now that the tariff amount for Chinese goods has dropped to 20%, GPI expects to see an uptick in both imports to the US and container pricing in the next month.
CNY is Coming!
It is not too early to start thinking of Chinese New Year. China celebrates New Year 2026 beginning on February 17 and ending on March 3rd. During this time, factories and businesses in China shut down for the weeks long celebrations. Plan to get your goods on the water and out of China by the end of January if you are looking to receive your goods before mid-March.
US Ocean Ports in November
US West Coast ports are currently experiencing no dwell times on incoming vessels while it is a little busier on the US East Coast with 3 – 9-day dwell times, depending on which port your goods are arriving at. We are expecting a slight uptick in imports to the US from China in November and December now that the tariff rates have stabilized.
US Rail
Rail yards around the US are busy with container dwell times between 4 and 5 days. Plan extra days into your timelines to account for delays.
AIR Freight
Air freight rates have been high due to importers trying to rush goods into the US prior to November 10th. This was the date the tariffs on China were set to expire. We are not expecting the rates to go down much, even though tariffs have been worked out for the time being. It is still peak shipping season, and the holiday rush is weeks away. If you need your goods for Black Friday sales, air may be the only way to ship at this point.
Best of luck with the start of your holiday sales this month. We look forward to bringing you the latest information on tariffs and the supply chain.
