After tariffs are suspended, US companies ship goods from China

Businesses have begun to increase goods from China to the United States after President Donald Trump suspended some tariffs from the country, causing a surge in demand in the coming months, which could lead to a bottleneck in the supply chain.

Ben Tracy, vice president of strategic business development at Vizion, which produces container tracking software, said this week was up nearly 300% compared to the week compared to freight bookings a week ago. This comes as Trump announced on Monday that he would reduce tariffs on Chinese imports within 90 days while trade talks between Washington and Beijing continue.

U.S. companies stopped goods and canceled orders last month,,,,, When Trump raised his tariffs on Chinese imports to more than 145%, it left many companies unable to bear the burden of importing goods. China's imports are still facing With a 30% tariff, the company appears to have taken advantage of the 90-day pause of higher tariffs to catch up with delayed shipments and bring as many products into the U.S. at a relatively low rate.

“In the past month, we have seen a significant decline in trans-Pacific trade, especially from China, with those numbers down 60% or more,” said Jessica Dankert, vice president of supply chains at the Association of Retail Industry Leaders. “So, since we have at least a 90-day window of relative certainty, we definitely want to see these volumes back up again.”

But despite some tariff pauses, companies are not expecting to sail in the coming months.

It can usually take about a month from China to the United States, but demand surges and limited quantitys Bryan Gross, head of the PWC, said ships, ports docking space and trucking cargo could add to several months.

"There is only a certain number of capabilities in the pipeline, and it can only expand to date. There is only a certain number of container ships. Only a certain number of appointments in the port can consume that capacity," he said. "The bubbles of the cargo will start to flow through the system, but are limited by the size of the pipeline."

The imbalance in supply and demand may also lead to higher transportation speeds, which have jumped in recent days.

Because it may take months for a ship to travel to the U.S. and then return to China, the increase in ships leaving China in the coming days and weeks could lead to container ships available this summer, a peak time for retailers to return to school and ship holiday merchandise.

"It might be a problem that in two months, this will be the peak season for retail, and we may not have enough containers in China to load, not only containers, but also enough vessels," Tracy said.

For other industries, it is too late to take goods in time. Julie Heckman, executive director of the American Fireworks Association, said U.S. fireworks importers stopped many shipments from China in April because they could not afford higher tariff rates.

And China She said the tariffs are still a huge cost of 30%, and the company has begun to resume shipping. However, for some, the July 4th item may be too late, causing a shortage of certain products.

"Now everyone is scrambling to try to take advantage of the 90-day pauses. But those sailings, bookings take a while. That's not to say you just flick the light switch and everything is back up," Heckman said. "The company is making these arrangements and they're going to do their best, but some of them may be after July 4."

There may also be consequences next year,,,,, As the United States celebrates its 250th anniversary of its independence, the fireworks industry is expected to surge in demand. Many fireworks companies stopped production in China in April due to uncertainty in tariffs. Heckman said that while some people restarted the work, in a limited window, Chinese companies could produce fireworks for the U.S. market, they lost valuable manufacturing time.

Retailers still exist Focus on the long-term impact of tariffs trying to plan in the coming months.

“Now that we have a more certain window in the near future, there is more planning and trying to put some more critical goods in production and water in the U.S. and bring it into the U.S.,” Dankert said. “But I think in the long run, what the business and industry really need is a sense of stability and certainty in the future to make longer decisions around ordering.”