The customs truce between the US and China brought a recovery of warehouses. Entrepreneurs hope that the stability of customs rates will support their business activities.
Warehouses in China are full of goods as duties have slowed exports to the US and even forced some factory to limit production. This week, however, the warehouses were revived after US President Donald Trump Tuesday (12 August) announced an extension of the so -called. Customs ceasefire by 90 days while both parties are negotiating an agreement. TASR informs about this on the basis of AFP report.
Also the warehouse in the South China production center Kanton came to life noise. Workers filled trucks with clothes and kitchenware, designed for American customers of the Chinese online shopping giant.
Trump’s customs policy disrupted global trade and launched a sharp retaliation response. In May, the two largest economies of the world agreed on a fragile customs ceasefire, each temporarily reducing duties to the second country’s goods by 115 %. In the US, duties have fallen to 30 %to Chinese goods, while Beijing duties to US products were reduced to 10 %. This agreement was extended by Trump from Tuesday to November, a few hours before it expired.
Demand persists
In the spring, when the duties reached the top, the loading of trucks in the Warehouse of the Weijiang logistics company stopped completely. The total supply of Weijiang fell by about 20 %in May, with the US market being about a quarter of its cross -border trade.
The trade has already recovered in July, but the upcoming end of the customs ceasefire caused uncertainty, although the company management believed that high duties would not return. Currently, the warehouse sends 100 tons of packages every 24 hours, rotating up to 70 trucks.
Weijiang recently invested in its own warehouse in Chicago. He still carefully monitors the reports of customs rates. However, the company management is optimistic and believes that it will not lose the US market, as demand for Chinese products in the US persists.
