Beijing: Commercial vessel traffic between China and the US saw a 27% decline in April, as tensions escalated following US President Donald Trump's implementation of reciprocal tariffs.
According to Anadolu Agency, the escalating tariffs have resulted in a significant slowdown in commercial vessel activity between the two nations. From April 1-25, 2024, 119 commercial vessels from China arrived in the US, carrying various types of cargo. This included 69 container ships, 35 dry cargo vessels, and a handful of mixed dry, live cargo, and roll-on/roll-off (ro-ro) ships. In contrast, only 87 vessels made the journey in the same period this year, highlighting the 27% drop. The breakdown for 2025 included 66 container vessels, 18 dry cargo vessels, and one each of live cargo, mixed dry cargo, and ro-ro vessels.
The impact of tariffs was also evident in the movement of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) vessels. In April 2024, 38 LPG and six LNG vessels returned empty to China after delivering their cargo to the US, while only one LPG vessel made the return journey in April 2025. China has notably decreased its LPG and LNG imports from the US, opting instead to source from countries in the Middle East.
In conjunction with these shipping disruptions, Chinese exports to the US fell by 21% in April compared to the previous year. Although this decrease was severe, it was less drastic than market predictions. ING Think's analysis suggests that US importers may be absorbing some of the tariff costs due to challenges in finding alternative suppliers, potentially leading to higher consumer prices in the US.
The tariff landscape has been turbulent, with US tariffs on China rising from 10% in February to 20% in March, and China implementing a retaliatory 15% tariff. President Trump's reciprocal tariffs, introduced on April 2, applied to all countries at rates between 10% and 50%. In response, China announced a 34% tariff on US goods, which escalated to 125% as US tariffs hit 145%. A temporary reprieve was reached during high-level discussions in Geneva, where both nations agreed to a 90-day truce, with significant tariff reductions set to take effect.
As per US Trade Representative data, the bilateral trade between the US and China was valued at $582.4 billion in 2024, with a significant US trade deficit of $295 billion. The World Trade Organization has warned that without a permanent resolution to the tariff issues, global trade could suffer, with the potential for an 81% decrease in US-China trade should high tariffs persist. The organization also predicts major shifts in global trade routes, with China's exports to North America expected to decline.