Trump’s China Tariff Pause: A Temporary Relief, Not a Long-Term Solution
On May 12, 2025, the United States and China announced a 90-day tariff truce. As part of this deal:
• Tariffs on Chinese goods entering the U.S. dropped from 145% to 30%
• Tariffs on American goods entering China were reduced to 10%
• The new rates apply to all goods arriving in the U.S. starting May 14
At first glance, this may appear to be a breakthrough after months of economic tension. But is it truly a step toward resolution—or just a pause before the next round of escalation?
Why Did the Trade War Start?
Trump’s trade policy—especially in his second term—has been focused on protecting U.S. manufacturing and reducing reliance on imports, particularly from China.
The former president has repeatedly accused China of engaging in unfair trade practices, intellectual property theft, and undercutting U.S. jobs by flooding the market with cheap goods. He’s also linked the trade relationship with China to the fentanyl crisis, imposing additional tariffs as pressure to halt the export of opioids into the U.S.
This trade war, which began with steel and aluminum tariffs and escalated into a broad tariff regime, was framed as an effort to re-shore manufacturing and rebalance the bilateral trade deficit.
What Were the Real Outcomes?
Despite the initial rhetoric, the trade war brought mixed results:
- Supply chains were disrupted, especially in electronics, textiles, and machinery.
- Prices for U.S. consumers increased, with businesses passing on added costs from imported goods.
- Manufacturers diversified, accelerating moves to countries like Vietnam, India, and Mexico.
- China’s retaliation also hurt U.S. exporters, particularly in agriculture and automotive sectors.
In short, while the tariffs did lead to a decrease in Chinese imports, they also introduced instability and unpredictability for global businesses.
Logistics and Freight: Ripple Effects
This 90-day tariff relief has already created a surge in demand:
- Global sellers are rushing to place orders before tariffs potentially return.
- Lead times are rising quickly, particularly out of China and Vietnam.
- Ocean freight costs are spiking, driven by vessel space shortages and high seasonal demand.
Carriers are now blanking sailings to manage rates, and forwarders are scrambling to secure space. Sellers who aren’t working with a proactive logistics partner may face delays and cost overruns.
At Proboxx, we’ve anticipated this. In the weeks leading up to the announcement, we began helping clients:
- Diversify their shipments
- Secure long-term sea freight contracts
- Lock in rates to protect their Q3/Q4 margins
- Avoid peak-season overcharges through strategic routing
Is This a Policy Shift—or Just a Tactical Move?
Most experts view this deal as a temporary de-escalation, not a strategic pivot.
The core issues—forced tech transfers, industrial subsidies, rare earth export controls—remain unresolved. Furthermore, Trump continues to push an “America First” agenda, encouraging domestic manufacturing and reducing reliance on China.
The 90-day truce appears aimed more at calming markets and appeasing voters than rewriting the trade relationship.
What Comes Next?
Uncertainty remains the only certainty.
If no broader deal is reached by mid-August, the tariffs may snap back—perhaps even higher than before. This is not just a pricing issue, but a strategic risk that sellers must factor into their planning.
How Sellers Should Prepare
At Proboxx, we’re encouraging our clients to treat this window as a strategic opportunity—not a safety net.
1. Verify Incoterms:
If your goods were shipped under DDP (Delivered Duty Paid), consult your freight forwarder. You may be eligible for a refund if the new lower tariff rate applies to your arrival date.
2. Lock in rates now:
Don’t wait for freight costs to peak. Book Q3 lanes in advance to stabilize margins.
3. Diversify your sourcing:
Now’s the time to reassess your overreliance on one supplier or one country. Reducing exposure to China helps reduce tariff risk.
4. Stay informed and agile:
Conditions may shift overnight. Ensure you have a logistics partner who updates you in real time and adapts with you.
Final Thoughts
The tariff pause offers short-term relief, but it’s not a solution. Businesses should not view this as the end of trade tensions—but rather as a warning sign to future-proof their supply chains.
At Proboxx, we’re helping sellers across Amazon and other platforms stay one step ahead—with logistics that are proactive, not reactive.
Book a free audit with us today HERE. Let’s talk about your current supply chain and how we can help you weather the next storm—before it hits.