Oct 13, 2025
From Truce to Turmoil: The 100 % Tariff That Reignited U.S.–China Tensions impact on Ocean Freight for next 3 months
This is an AI generated image
Recently on 10th October 2025, USA announced to impose 100% tariff on Chinese imports, effective from 1st November, below is the Chronological order of US – China trade war
Chronological details for USA China trade war | |
Feb 2025 - U.S. imposed a 10% tariff on all Chinese imports under the International Emergency Economic Powers Act (IEEPA), effective from February 4 |
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10th Feb 2025 - USA imposes tariff steel and aluminium for 25% for all imports, including those from China. |
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Mar 2025 - USA increase tariff to 20% on all Chinese products | China responds with 10-15% tariff on all USA products |
April 2025- USA increased tariff to 54% on all Chinese products effective 9th April | China responded with 34% tariff on all USA products |
April 2025- USA increased tariff to 84% on all Chinese products effective 9th April | China responded with increase in tariff |
April 2025- USA increased tariff to 145% on all Chinese products effective 9th April | China responded with 125% tariff on all USA products effective April 11 2025 |
01-05-2025 - Both the sides agreed for a pause of 90 days for tariff |
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| 1st - 7th October 2025 - China reduces the exports of rare earth material to USA. This time the initial steps were taken by China |
01-10-2025 - USA increased tariff to 100% on all Chinese products , above the imports duties effective from 1st November 2025 |
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Impact on Ocean Freight –
The Chinese exports will be under high pressure till 31st October 2025 and Global Ocean Freight should increase, yet the pressure will not be high as most of the destination freight is already published for October month.
Since November the Ocean Freight will reduce as the exports would reduce from China and there would more space and less demand on ships.
Rate would further reduce in December.
As informed in our earlier blogs, the Drewry index had a continuous fall for 16 weeks, thus we expect the freight to fall further.
In case Trump, holds the tariff imposition for few days then there would be sudden surge in global Ocean Freight as happened earlier in May 2025 when many ships were routed for China to US .
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