At White Star Logistics, we believe that staying ahead in the logistics industry means keeping our partners informed and prepared. The latest development in U.S.–China trade relations and tariff agreement has the potential to significantly impact cross-border commerce—especially for businesses relying on efficient land transportation and cross-border distribution between the U.S. and Canada.
Here’s what you need to know:
How Did We Get Here?
The U.S.–China trade war began in 2018 under the Trump administration as a response to what the U.S. described as unfair trade practices. Over the years, both countries imposed escalating tariffs on hundreds of billions of dollars worth of goods, impacting sectors from manufacturing and electronics to retail and raw materials.
At its peak, U.S. tariffs on Chinese imports surged to 145%, while China retaliated with tariffs of up to 125% on American goods. The logistics industry—including ground freight and cross-border trucking—has been dealing with ripple effects ever since.
What’s New: A Temporary Truce
As of May 2025, the U.S. and China have agreed to a 90-day reduction in tariffs, aimed at giving both economies space to reassess and deescalate.
Here are the key figures:
- U.S. tariffs on Chinese goods will be reduced from 145% to 30%
- China’s tariffs on U.S. goods will drop from 125% to 10%
- The “de minimis” threshold—which allows low-value shipments to enter duty-free—will not be raised despite business sector requests.
This agreement covers both bulk and parcel shipments, which directly affects port drayage, last-mile delivery, and cross-border freight operations.
“This is not a final resolution, but it’s a critical cooling-off period that gives us room to stabilize logistics and supply chain flows,” said a senior official involved in the negotiations.
What Does This Tariff Agreement Means for Your Supply Chain
While this trade agreement is temporary, it introduces short-term relief for importers and exporters dealing with inflated landed costs and customs delays. Here’s how:
✅ Reduced landed costs for goods moving across borders
✅ Improved flow through ports of entry—especially critical for time-sensitive deliveries
✅ Opportunities to reassess supplier contracts, warehousing strategies, and ground freight routing
For businesses operating in the U.S. and Canada, this shift also allows better forecasting of truckload volumes, LTL (less-than-truckload) pricing, and cross-dock logistics.
We’re With You—Every Mile of the Way
At White Star Logistics, we understand that changes in global trade policy don’t just happen in boardrooms—they hit the road. That’s why we’re committed to helping our clients and partners adapt, optimize, and thrive.
Whether you’re recalculating duties or realigning your domestic freight strategy, we’re here to help you keep your cargo moving and your operations strong.
Stay tuned to our social channels for ongoing updates and tariff agreement insights. The road ahead may be shifting—but you’re not driving it alone.
