USA-China trade dispute: freight prices are exploding, jobs are at risk!

USA-China trade dispute: freight prices are exploding, jobs are at risk!

The trade conflict between the USA and China is making news again. The situation is currently on the verge of a turning point, as the so-called “ceasefire” will soon end. The two countries agreed to temporarily suspend customs disputes until mid-May 2025, but as that deadline approaches, freight rates on trans-Pacific routes have already skyrocketed. Loud Plastic web The cost of transporting a 40-foot container (FEU) to the US West Coast increased by a whopping 43 percent, while transport costs to the East Coast increased by 34 percent.

Why this sudden increase? Quite simply: the deadline for observing the “ceasefire” expires at the end of this month. New negotiations will begin again between the two countries at the beginning of July. US President Donald Trump and Chinese President Xi Jinping have agreed to halt tariff increases for now to buy time for these negotiations, according to a report by VOV World emerges.

The economic impact

But the consequences of the trade disputes are already being felt. The Port of Los Angeles, one of the largest container ports in the world, is experiencing a drastic decline in freight volume. Loud Time online Many US companies have started canceling orders from China. At the ports of Los Angeles and Long Beach, that decline could be as much as 40 percent. In order to continue transport, shipping companies are using smaller ships, which only increases the economic challenges for the ports.

The Port of Los Angeles, which handles 10 million 20-foot containers annually, and the Port of Long Beach, which has a similar backlog, face the threat of massive job losses. The entire freight business is suffering significantly from high import tariffs and it is uncertain how long this will last.

A wait-and-see look into the future

The fate of hanging negotiations is not only relevant for the two of them; This also has far-reaching consequences for global markets. Insiders report that the US has so far imposed tariffs worth $250 billion on Chinese goods, while China countered with tariffs worth $60 billion on US imports. Trump has already indicated at the G20 summit that another 25 percent tariff on all remaining goods from China, which could amount to around $300 billion, is up in the air.

With new negotiations potentially proving tricky, it remains to be seen how and whether the two countries will find a workable solution. The economic situation is in jeopardy, and many hope that an early compromise can avert the impending damage.