Chinese prepare to resume US exports

Companies’ hopes are high as US-China trade talks set to begin today in Geneva

- CASEY HALL

China-based shipping agents have resumed buying container space for goods headed for the United States after a series of US tariff-induced cancellations, as Beijing and Washington head for trade talks in Switzerland.

Trade between the world’s two largest economies has slumped since US President Donald Trump imposed 145% tariffs on China-made goods on April 10, a move which prompted China to impose levies of 125% on US-made products.

The US tariffs, which affect an estimated 80% of goods shipped from China to the US, prompted sailings from China to the US to drop 60% in April, according to Flexport, a logistics and freight forwarding broker. Customers from logistics operator Hapag-Lloyd cancelled 30% of shipments from China last month.

Since late April, however, traders have stepped up buying of shipping capacity, locking in space from mid-May, according to two China-based executives with freight forwarding firms who declined to be named as they weren’t authorised to speak to the media.

Four China-based exporters, some serving large US retailers such as Walmart, also told Reuters they were preparing to restart shipping goods to the US in the coming weeks, a previously unreported development.

With the US and China adopting more conciliatory language on trade since late April, and officials due to begin trade talks in Geneva today, exporters are hopeful that the two countries will soon move to lower tariffs.