US Tariff freeze offers temporary relief but import volumes drop

President Trump’s announcement of a 90-day pause on retaliatory tariffs for US trading partners outside China has given importers a brief window to recalibrate – but it has done little to stem the tide of disruption already sweeping through global supply chains.

The dramatic 125% tariff hike on Chinese goods remains fully in force, and its impact is immediate, as cargo bookings are cancelled, sourcing shifts and tensions rise. Now, in a significant escalation, China has announced that it will raise its own additional tariffs on US goods from 84% to at least 125%, effective 12 April. Beijing’s finance ministry added that it would ignore any further US tariff hikes on Chinese exports, stating that “at the current tariff level, there is no market acceptance for US goods exported to China.”

Chinese exporters have already been reacting, with many cancelling or rerouting shipments and raising prices by up to 70% for eCommerce goods. The fallout is reflected in the numbers: according to Dun & Bradstreet, US import bookings from Asia plunged to just 225,900 TEUs in the past week – down from around 633,000 the week before.

While some categories are exempt – including semiconductors, copper, lumber, pharmaceuticals, energy, and key minerals – the new baseline 10% tariff applies to all non-Chinese imports in addition to existing duties, hitting UK and EU exporters alike.

The UK has focused its negotiations on removing the 25% tariff on British-made cars, while admitting it will be difficult to sway Washington on the new 10% blanket tariff. The EU has taken a cautious approach: although member states back countermeasures, Commission President Ursula von der Leyen has committed to giving negotiations one final chance before retaliating.

Retailers and importers are already reacting, postponing fall and holiday purchase orders by 30–60 days and shifting sourcing to lower-tariff nations like Vietnam and Taiwan, where a 10% duty typically adds just 3% to retail prices. These markets are rapidly becoming more attractive amid an increasingly volatile US-China landscape.

Meanwhile, the proposed introduction of port fees – up to $1.5 million for Chinese-built or operated vessels calling at US ports – remains a point of contention. USTR Jamieson Greer signalled to the Senate Finance Committee that revisions are underway to avoid undermining US export competitiveness.

Pressure is building on US Customs and Border Protection (CBP), with the increased complexity of tariff codes and documentation creating more manual processing work, while staffing levels have not risen in line with demand. There is growing concern that CBP could be overwhelmed if volumes rise suddenly or new duties are introduced.

With trade flows redrawn, customs agencies stretched, and policy still evolving, the 90-day reprieve is no guarantee of stability – only a pause in an increasingly unpredictable trade war.

If your organisation is affected by recent developments, or if you simply want to stay ahead of what’s coming, our team is ready to help. We offer detailed supply chain impact assessments, scenario planning, and tactical advice to help you navigate whatever comes next.