Export frenzy sweeps Shanghai as firms capitalize on US-China tariff relief

english.shanghai.gov.cn| May 16, 2025
VCG111567322423.jpg
Containers from all over the world wait to be loaded or unloaded at a container terminal in Shanghai on May 14, 2025. [Photo/VCG]

A significant easing of US-China trade tensions has triggered a surge in activity among Shanghai's exporters, as companies scramble to take advantage of a 90-day tariff rollback announced earlier this month.

In a joint statement made on May 12, the United States has agreed to slash duties on Chinese products from 145 percent to 30 percent for a 90-day period, while Beijing has agreed to drop its levy on most goods to 10 percent from 125 percent.

Shanghai Wareda Sunshade Equipment Co Ltd, a company specializing in RV sunshades, saw its orders double on the night the tariffs were reduced. The company's US sales account for 50 percent of its total revenue, and the sharp drop in tariffs has prompted US clients to rush to place orders.

Ding Linfeng, the company's general manager, said they did not expect the US clients to react so quickly. "They are eager to place orders and want us to complete production within a month, hoping to seize the opportunity created by the 90-day window."

The tariff rollback has also led to a race among US clients to replenish their inventories, which had been depleted by the tariff hikes. Many clients are now requesting expedited shipping, with some even opting for air freight to ensure their goods arrive before the window closes.

Meanwhile, the textile industry is also experiencing a rush. A knitting factory in Shanghai's Songjiang district, which had been holding back shipments due to high tariffs, received urgent notifications from the US clients to proceed with deliveries.

The factory, which had accumulated 50,000 pieces of clothing ready for shipment, began working around the clock to complete the final packaging and labeling processes.

"We were very relieved when we heard the tariffs had been reduced," said Yu Jianfen, the factory's board chairman. "We immediately started working overtime to get everything ready for shipment."

The 90-day tariff truce has created a sense of urgency among exporters, who are keen to maximize their shipments before the window closes.

While the immediate focus is on fulfilling US orders, many companies are also looking to diversify their markets, with some exploring opportunities in Europe and other regions.

 

Sources: Shanghai Observer, CCTV News