From Yahoo Finance: 2025-05-12 08:51:00

U.S. and Chinese officials agree to roll back recent tariffs and implement a 90-day truce in the trade war. The deal, announced in Geneva, aims to facilitate further negotiations and ease disruptions in the global economy, impacting shipping and transportation markets immediately.

Freight rates are forecasted to rise sharply as importers rush to take advantage of the tariff truce. Ocean freight rates are expected to increase first, followed by domestic trucking rates, to address backlogs and expedite orders before potential policy changes at the end of the 90-day period.

The suspension of tariffs is likely to create logistical challenges, with companies struggling to secure containers in China and access truck capacity in the U.S. Transportation infrastructure may be strained by the surge in shipping volume, affecting importers differently based on their size and consistency.

Under the 90-day truce agreement, the U.S. will reduce its tariff rate on Chinese goods from 145% to 30%, while China will lower its rate on U.S. goods from 125% to 10%. Both countries aim to avoid economic decoupling and emphasize the importance of trade cooperation for producers, consumers, and the global community.

Financial markets react positively to the tariff truce, with stock futures rising sharply and oil prices surging. The de-escalation of tensions between the U.S. and China provides immediate relief to global markets, preventing potential trade embargoes that could disrupt the $660 billion trade relationship between the two countries.

Companies should prepare for surging transportation rates by shipping early to minimize delays and navigate potential capacity constraints. Acting quickly will help mitigate disruptions and avoid being caught off guard by the expected freight rate increases in the coming months, as importers adjust to the temporary tariff reductions.

Read more: Transportation rates likely to surge during tariff pause