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Key Updates

• New Tariff Rate: 145% (125% "reciprocal tariff" + 20% existing fentanyl-related duties)

• Effective Immediately: Applies to all Chinese imports, retroactive to shipments not cleared by May 27.

• Global Impact: US grants 90-day tariff pause for 75 trading partners (rate cut to 10%), but singles out China for maximum escalation.

• Market Chaos:

• Exporters halt shipments – Some abandon cargo mid-transit to avoid crippling costs.

• Daily container volumes crash – From 40-50/FEU to 3-6/FEU for major Chinese exporters.

• Southeast Asia freeze – Factories suspend orders from Philippines, Vietnam, Indonesia, Malaysia.

Industry Collapse: "Business Is Impossible"

• Importers: "3Mingoods,3Mingoods,3M in tariffs – we can’t operate." Many refuse to pick up shipments.

• Exporters: Forced to dump containers with carriers; tariffs erase all profit margins.

• Carriers: Brace for massive rollovers and contract renegotiations as spot rates teeter.

China’s Retaliation

• 84% tariffs on US goods (effective April 10).

• Official stance: "We will fight to the end" – Commerce Ministry vows "resolute measures" against US "bullying."

What’s Next?

1. Short-Term: More cargo abandonment, contract defaults.

2. Mid-Term: Carriers may blank sailings as USWC demand evaporates.

3. Long-Term: Global supply chains reconfigure to bypass US-China trade.

Quote:
"This isn’t a trade war—it’s a trade massacre."
— Hong Kong shipping executive

(Sources: White House briefings, SCMP, China Customs)