'Export Rush' Encompasses China as Companies Scramble to Capitalize on Temporary Tariff Relief
Tariff Break Sparks Instant Response
A sudden easing of US-China trade tensions has set off a rapid rise in export and industrial activity across China. Businesses on the two sides of the Pacific are scrambling to capitalize on an earlier this week initiated 90-day tariff rollback.
In southern China, Amazon toy vendor Niki Ye reported a 30% increase in orders following the news. Her company has already begun hiring additional workers to meet demand. "And this is only the first week," she said, citing strong momentum.
Factories and Ports Ready for Spurt
Liu Changhai, a sales manager at an eastern Chinese export-oriented agency, said that current levels of sales are at peak season. But there is a condition: "The new orders haven't been made yet and are not ready for shipment," he said.
National ports are preparing to be invaded by cargoes. Bookings into containers going to China-bound containers in the United States increased nearly 300% in the week ended May 13 from the previous week, according to figures supplied by container-tracking software provider Vizion.
A Sharp Reversal in Trade Activity
Just a month ago, increasing tariffs between China and America—driven by moves by President Donald Trump—had pushed trade between the two economic giants to the edge of a freeze.
But on Monday, a breakthrough occurred in Geneva, where negotiators from both nations agreed to slash tariffs by 115 percentage points for 90 days.
Details of the Tariff Agreement
The deal, which took effect on Wednesday, reduced US tariffs on Chinese goods to 30%, discounting previous tariff stages in Trump's first term. China reciprocated by reducing retaliatory tariffs on US goods from 125% to 10%, though some of the previous tariffs remain.
Negotiations are set to resume next few weeks, but businesses are already moving fast to take advantage of this brief window.
Companies Urged to Act Fast
A 90-day window is critical," stated Ge Jizhong, chairman of Shanghai Xinhai Customs Brokerage. In an interview with the Securities Times, a state-sponsored financial newspaper, he explained:
"American companies will be keen to restock their inventories within a 90-day time frame, and Chinese companies will be keen to export commodities and deplete their warehouse inventories."
Supply Chain Strategies Reversed
Ben Schwall, CEO of STG Consultants, a supply chain consultancy in China, said that a number of his clients are rethinking procurement strategies.
"Several were shifting production to Vietnam and Indonesia to avoid tariffs," he said. "Now they're saying, 'Can we send orders back to China?'
Schwall also cited efforts to revive previously canceled orders or ship back goods that had been held back. He said some Chinese manufacturers had even terminated employees, and two of their partner factories had shut down altogether during the tariff accumulation.
Chinese Manufacturers Jump into Action
Chinese manufacturers like Vivi Tong, who runs a Zhejiang province factory, are now scrambling to meet the rush. Her factory, producing remote-control cars for US chain stores, is preparing to see an order boom.
As a factory, we need to pick up as much business as possible within these three months and complete production and shipping as rapidly as possible," she said. But she also stated she "cannot estimate" what will happen when the tariff reprieve expires.
Overtime and Overnight Shifts Common
Chinese government-controlled media quotes suppliers as working night and day to stay ahead of demand from US buyers trying to fulfill backordered purchases.
Shandong province factories, for example, have resumed full capacity, with employees working on filling up immediate shipments bound for the US.
American importers are also moving quickly. Greg Mazza, who runs a lighting business in Danbury, Connecticut, said he is trying to bring in inventory that had previously been manufactured in China but not shipped due to tariff costs.
“We’re acting quickly,” he said. Mazza expressed concern that shipping prices may rise sharply as more companies try to stockpile goods before the tariff rollback ends.
Uncertainty Beyond the 90 Days
Even though the tariff hiatus is a respite, there is still uncertainty. American and Chinese companies alike are in the dark regarding what follows once the 90 days expire.
As trade talks continue, businesses wish to prepare for the best of the time—hoping for long-term breakthroughs, but bracing for a repeat of tariffs.
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