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Tariff and Shipping Update from 5/30 to 6/1

  • David Carr
  • Jun 1
  • 3 min read


A lot has happened this weekend, some "good", and some "bad." So first, on Friday at a rally in Pennsylvania, President Trump announced that he was going to raise the tariff on Section 232 aluminum and steel tariffs from 25 to 50% effective Wednesday, June 4, 2025. Nothing is in writing yet, and whether it's bluster for the steelworkers benefit since the benefit in question was for the US Steel/Nippon Steel deal, remains to be seen. But for right now, at least, it looks like global imports of aluminum and steel and their derivatives will go up very soon. It is possible that there will be on the water exemptions and likely the UK will be the only nation exempt and possibly USMCA products as well as earlier deals with those nations have exempted them or partially exempted them from 232. I have a feeling that there will be a supply chain break for this one. 50% is a substantial number, not that 25 was low, but US steel current production isn't anywhere near where it will need to be nor, do I think, it will be possible to get there any time soon so either prices go way up or, once the stock market tanks again, there will be a supply chain break.


On Saturday May 31, the United States Trade Representative (USTR) officially extended the Section 301 tariff exemptions until August 31. The current products covered under 9903.88.69 and 9903.88.70 exemptions have their deadlines extended for 3 months. These HTS codes represent an extension already given from 2024 and their codes will not change, simply the dates associated with them. This is good news if your importers are bringing in products from China as it could represent up to a 25% reduction of expected tariff payout after May 31. But, as with most things, it is temporary. However, it is allowing for more time to shift supply chain if necessary.


June 1 is considered the day where many shipping carriers and companies are raising rates for shipments due to increased demand. Of course, rates have been rising through May but rumors of large jumps in freight for Hapag and others have been in the news. Some carriers are rumored to be almost doubling the cost of shipping to Pacific ports in the US. Fueled by tariff reductions with China and the looming increases in July and August, the summer shipping season will see a rise in freight and parcel rates. Even Fedex and UPS are raising their rates for import and export to and from certain zones. Additionally, it is becoming increasingly difficult to compete for space when shipping from China, especially. There is a bit of a rush to get everything in as soon as possible. With President Trump's volatile nature dictating trade policies based more on emotion than logic, no one can be sure that any nation's reduction in tariffs is safe until July or August. Then in October, rates will rise again for shippers with Chinese vessels as the Chinese vessel port fees will com into effect. There is definitely a rush for the summer to get as much product as possible into the US to beat the tariff and fee schedule. Carriers know this and are increasing prices to follow the increased demand. With expected tariff rise to be right as peak season begins, there is a definite shift as importers and carriers try to keep up with this everchanging landscape.

 
 
 

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