Chinese exporters and U.S.-based suppliers have welcomed a temporary easing of tariffs between Washington and Beijing, but many remain wary of the deal’s short-term nature and the ongoing instability in global trade relations.
According to reporting by the Financial Times, the truce — negotiated over two days in Geneva by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng — reduces additional U.S. tariffs on Chinese goods from 145% to 30% for a 90-day period. The move staves off a full decoupling between the world’s two largest economies but leaves much unresolved.
Jacob Rothman, co-founder of China-based Velong Enterprises, which supplies kitchenware to major U.S. retailers like Walmart, told the Financial Times he was “shocked and elated” by the agreement. Still, he described it as offering only “a bit more breathing room,” with tariffs on his products remaining near 40%. “It’s exactly the percentage that keeps my categories of product viable,” he said, highlighting how precariously balanced the new tariff structure remains.
Chinese exporters have responded with urgency. Shipments to the U.S. are expected to “significantly increase,” said Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 2,000 Chinese sellers. Freight forwarders across the region have already seen surging demand, with shipping firms bracing for a sharp short-term spike ahead of Thanksgiving and Christmas.
Zhu, a manager at Greenroad International Logistics, told Financial Times that U.S.-bound shipping demand “is basically going to explode” in the coming weeks. Ports in southern China are reportedly becoming congested as exporters rush to move goods before the 90-day reprieve expires.
Still, the fragile nature of the deal has led many exporters to proceed with caution. Wang Xiaosha, general manager at Fujian Jie Ao Industrial, said her company would not take new U.S. orders until a more permanent agreement was in place. Others, like Ken Huo from the Foshan Foreign Trade Association, noted that some companies were instructed to immediately ship all available stock, fearing a sudden reimposition of punitive tariffs if talks collapse.
Despite the pause, many businesses are continuing efforts to shift production out of China. Rothman noted that while the truce has slowed his company’s transition to facilities in Cambodia and India, it has not stopped it. “It means the migration of production from China to our facilities in Cambodia and India could be just that — a migration, not an evacuation,” he said.
The recent reduction in tariffs follows months of instability triggered by former President Donald Trump’s so-called “liberation day” tariffs introduced in early April. The policy had effectively frozen many exports and slashed U.S. orders from Chinese suppliers by nearly 50%, according to Wang Chao of Super Popular Logistics.
Though the truce offers short-term commercial breathing room, economists caution that it is only a stopgap. Heron Lim, an analyst at Moody’s Analytics, said the deal “just buys time for both sides to try and readjust,” while warning that Trump’s erratic tariff policy continues to undermine global business confidence.
As the 90-day countdown begins, exporters, logistics providers, and manufacturers are watching closely. Whether this temporary pause evolves into lasting policy stability—or devolves into further disruption—will shape trade flows, supply chains, and investment strategies well into the next season and beyond.
