Shipping rates for cargo containers from China to the U.S. have dropped sharply after a temporary spike earlier this month.
Rates on the Shanghai-to-U.S. West Coast route have fallen to around $2,500 per 40-foot container, down from a peak of $6,000.
The earlier rise in prices followed President Donald Trump’s decision to cut tariffs on Chinese goods to 30% from 145%, prompting U.S. importers to rush in orders they had previously delayed. However, the rebound in shipments has been smaller than expected, and the fall in rates suggests the surge in imports may not last.
Trump had first raised tariffs to 145%, nearly halting import shipments from China in April. The reversal to a 30% tariff restarted trade flows, but the cost increase remains significant at a time when U.S. economic data points to slowing growth.
The World Container Index, which tracks global shipping prices, fell 9% this week for the second week in a row after five weeks of gains.
Importers had stockpiled goods ahead of the tariff hike, which has delayed price increases for consumers. But retailers like Walmart have warned that prices will start rising by late May and June.
Federal Reserve Chair Jerome Powell said on Wednesday that he expects tariffs to contribute to inflation starting this summer. Some tariffs are already in place, and a July 9 deadline looms for broader increases.
There is uncertainty over whether Trump will lower tariffs further to a 10% baseline or take more aggressive action. Trade experts say the tariff policy is placing pressure on both imports and inflation, affecting overall economic activity.
Maritime expert John McCown said that lower import volumes slow economic growth, while higher volumes risk pushing up inflation, leaving no easy outcome.
