For months, logistics professionals have been concerned with the impending tariff hike on goods coming from China. Though they were supposed to start on January 1st, President Trump delayed them as talks between the two nations shows promise. The amended date of March 1st is looming on the horizon as the President again announces a possible further delay.
The impact of the pending tariffs is being felt around the nation as companies front-load cargo, importing more than necessary to have cargo on hand when prices go up. As more and more warehouses fill to bursting -a common occurrence now in California and along the US West Coast, we didn’t feel the shut down for Lunar New Year as deeply as we had in years past. Freight is on hand and the prices are holding steady as we sit with bated breath for updates on the third tranche of tariffs to either go into effect or be removed completely.
According to tweets sent by President Trump “As a result of these … very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!” But no official filing has been made following up on the announcement. When pressed for information the President offered up another month as the timing both countries would need to make enough substantial progress to prevent the tariffs.
Concerns about further delays without actually cancelling the tariffs are valid as importers quickly run out of room to store their cargo, whether they happen the first of March or April. The threat of more expensive cargo has everyone rushing to keep ordering, keep gathering in case the tariffs come to pass, but that may not come to pass if the President gets his way. We look forward to watching these issues with you and working to ensure your cargo comes in as it’s needed by the most efficient route we can find for you.