Trump’s U-Turn opens a window of opportunity

President Trump’s volte-face on trade tariffs has opened a window of opportunity for US importers to bring in freight over the following three months, with a significantly lower tariff of ‘just’ 10%. The announcement followed a week defined by Trump's global tariff announcements on 2 April which led to escalating tariff announcements between the US and China, and turmoil on global stock markets. According to Xeneta chief analyst Peter Sand, the pause on higher tariffs announced by Trump yesterday, (9 April ’25) which will bring almost all import duties down to the base level of 10%, presented shippers with the chance to bring in cargo now rather than wait to see if tariffs are eradicated altogether given the volatility of the situation. “It would be sensible for those with the opportunity to move some freight now, many will not wait to see if tariffs will be lifted, so we could see a frontloading of cargo into the US,” said Sand.

It is understood that all tariffs will return to the base 10% level except China, which has had an effective rate of 150% imposed by Washington, an additional 125% on top of the initial 25% taxes. Mexico and Canada never had a base rate tariff.

Tariffs on aluminium and steel and finished cars, imposed on 2 April, remain at 25% and new tariffs on car parts are expected to be enforced on 2 May.

The imposition of further escalating import taxes on China are considered to be irrelevant. According to the UK national paper The Guardian: “With tariffs that high, Trump might as well set them to a gazillion per cent and demand every import comes with a free Fabergé egg: the additional rate will make a minimal difference.”

World Trade Organization (WTO) analysis suggests that trade between the US and China could fall by up to 80%, a $466bn drop, according to WTO forecasts."Our assessments, informed by the latest developments, highlight the substantial risks associated with further escalation," said WTO director-general Dr Ngozi Okonjo-Iweala.