US ports are bracing for a massive backlog of Chinese shipments of electronics, toys, machinery…and wooden furniture, after the White House and Beijing agreed to a 90-day pause on escalating tariffs between the two largest economies.
“The Government of the United States of America and the Government of the People’s Republic of China have agreed to reduce tariffs on imports and exports w.e.f May 14, 2025, for an initial period of 90 days,” according to a joint statement published overnight. In effect, this means the US will temporarily lower tariffs on Chinese goods from 145% to 30%, whilst China will cut levies on American imports from 125% to 10%.
“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” the statement said.
The latest development comes after CNN reported that for 12 hours on Friday, not a single cargo ship left China with goods for two major ports on America’s West Coast, down from 41 vessels arriving at the Port of Los Angeles and Port of Long Beach per day in the weeks before.
In the months leading up to the trade war, China exported a huge (and growing) volume of (discounted) furniture through the West Coast, with brokers trading a (near) merchandise record last year to stimulate its economy. As it stands, China accounts for about 40% of all furniture produced, with huge volumes of timber, plywood, and non-structural boards (including MDF, OSB, and particleboard) used in finished furniture that is then transported into the United States—its largest export market.
And given that China makes up more than 27.7% of all furniture, bedding, light fittings and prefabricated buildings imported into the United States (more than US $18.5 billion in customs value), container shipping experts, like Lars Jensen, are expecting an immediate surge in cargo from the United States for two specific regions:
“Reason 1: There is already a large amount of cargo ready to go as U.S. importers have been adopting a ‘wait-and-see’ strategy over the past month and abstained from shipping cargo which is already ready,” Jensen said. “Reason 2: The 90-day pause expires during the usual peak season for holiday-related goods going to the US. Therefore, we should expect a possible pull-forward of cargo, creating a shorter, sharper, peak season from now.”
- To learn more about the US-China trade talks, and whether an impasse will help restore the United States trade in hardwood and softwood logs, click here for Wood Central’s story yesterday.
