The Effect of U.S. and China Trade Relations on International Shipping

Shipping containers with United States and Chinese flags imposed over a map background

U.S. and China Trade Relations

The trade war between China and the U.S. has been escalating, and both sides have imposed enormous tariffs as a result. Trade relations between the two largest economies in the world intensified last year after the United States enforced tariffs on $250 billion of imported goods from China. As a result, China retaliated and placed tariffs on $110 billion of U.S. products.

After months of instability, progress in the U.S. and China trade war has recently made news as both sides agreed to a deadline to resolve their differences. Although there is still great uncertainty on the long-term impacts this will have on U.S. exports to China, the shipping and logistics industry has already begun feeling the heat.

The Trade War’s Expected Impact on the Shipping Industry

The many aspects of imposed tariffs, the wide range of products affected, and the evolving negotiations between involved countries lead to great ambiguity. The consequential results on the supply chain and international ports are still unknown. However, the tariffs imposed thus far appear to target all end consumer products imported from China without exclusion. Chinese end consumer products are primarily shipped as containerized cargo, and the industry is predicted to see material adverse impact as a result. The East-West shipping routes are expected to be the largest portion of the market that is impacted most by the tariffs.

The tariffs affecting the shipping and container industries are expected to negatively impact all U.S. and Chinese-based liner shipping companies. However, as negotiations between the U.S. and China are proposed to take place soon, it is hopeful they will be able to reach an agreement without further escalation. The anticipated negotiations would safeguard the shipping industry from taking any immediate action or reaction.

Global Shipping’s Expertise in International Imports and Exports

Global Shipping Services’ first-hand, industry experience gives us valuable insight into the international shipping process and readily prepared us to handle any ambiguities during turbulent trade times. Global Shipping provides a seamless shipping experience with import and export consultants who have worked in every aspect of the business and who offer unparalleled knowledge in the shipping industry. We know the complexities of international shipping and are expertly equipped to handle your imports and exports with customs brokerage and documentation services.

Contact a Global Shipping Consultant Today!

We create personalized shipping solutions and serve as your adviser throughout the entire shipment process, interacting with government agencies, customs brokers, banks, and distribution warehouses. During uncertainties in trade practices and possible logistical changes, Global Shipping Services is the trusted choice for shipping solutions. Our highly qualified export and import consultants guarantee the effortless transportation of products to their destination. Contact us today to speak with a consultant about taking advantage of worry-free solutions for international shipping.

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