The US -China trade war impact now spills over onto international shipping channels. As tariffs initiated by Donald Trump become more entrenched, Chinese exporters are already canceling ships mid-journey to sidestep crippling bills. Several are passing shipments off to carriers citing unviable losses.
When Trump suspended tariffs on most countries, China squarely stands in his crosshairs. Exporters, e-commerce vendors, and cross-border value chains are as a consequence under major disruption. As canceled orders, plant closures, and escalating retaliation by Beijing pile up, the global trade balance is heading into perilous new waters.
Chinese left Cargo stranded at sea
Trump’s Chinese tariffs, some as steep as 125%, have provoked a desperate reaction. Exporters are limiting their losses by stopping shipments already on the way. Container numbers, according to a South China Morning Post report, have fallen from 40–50 per day to only 3–6.
Factories in Vietnam, Indonesia, Malaysia, and the Philippines have also halted exports. Orders that haven’t shipped are being scrapped. Goods already at sea are being re-costed—or even abandoned. One firm told SCMP, “We’re leaving cargo on the water—no one will buy them now.”
Exporters suspend operations
The same firm reported that they went back to China to deal with mass order cancellations. They’ve suspended all operations now until tariffs stabilize. One employee added, “The loss on each container is now greater than the profit from two. Who’s going to continue doing this?”
The sudden tariff surge has flipped normal business on its head.
In the meantime, American firms are backing away from transactions. They cannot swallow the price increases. Chinese producers, who were once discounting to keep customers, now are not.
Take Chen Qingxin, for instance, owner of a toy factory. Giving more discounts is not possible, he said. His factory is already operating at a loss. Others have said the same: they’ve hit their breaking point.
Amazon sellers consider exit
Amazon sellers are also in trouble. Per the Shenzhen Cross-Border E-Commerce Association, numerous sellers plan to increase prices or leave the US market.
Association leader Wang Xin indicated the new tariffs have increased customs delays and shipping expenses. Sellers are therefore switching to Europe, Canada, and Mexico. Others are relocating factories to Vietnam or Mexico just to survive.
China Hits Back
China hasn’t remained silent either. Thursday saw it hit back with its own 84% retaliatory tariffs. It boycotted American companies and initiated anti-dumping investigations as well. The Commerce Ministry stated that these measures represent a “severe” disruption to the economy.
Yet, China maintains it is willing to engage in talks. It encouraged the US to “meet halfway” and ease tensions through cooperation.
The bigger picture is dire. The WTO predicts U.S.-China trade could contract by 80%. Markets are already nervous. Stocks are falling, and gold is climbing as investors flee to safety.
For the moment, the world economy is holding its breath as it watches this standoff unfold. The longer it continues, the more it will hurt trade flows—and companies in the middle.
