China's major ports stall as US tariff hike to 145% disrupts trade flow, factories halt production

By Thursday, hardly any cargo ships were headed to the US from the once-bustling ports of Shanghai and Guangdong, while export factories in provinces vital to China's export economy have largely come to a standstill, according to sources within the country, as highlighted by RFA.

Local business owners stated that stacks of shipping containers, which did not make it onto ships bound for the US by the April 9 deadline, are now accumulating at the ports of Shanghai and Guangdong, as per RFA reports.

Inside warehouses, goods that were originally planned for export to the US are left unattended, while factory production has halted in Zhejiang and Guangdong, which are the two provinces contributing the most to China's exports in 2024, the RFA report emphasized.

On Wednesday, US President Donald Trump declared he would increase "reciprocal tariffs" on China to 125 per cent, stating that this would take effect immediately. The White House subsequently clarified that the total tariffs on Chinese imports amount to 145%, factoring in a prior 20% tariff placed on Beijing regarding fentanyl trade, as reported by RFA.

The back-and-forth tariff exchange that has occurred between Washington and Beijing over the past two months was instigated when Trump enforced a 10% tariff on China on February 4, pointing to its involvement in the fentanyl trade, a potent opioid contributing to a significant number of deaths in America, according to the RFA report.

Just days prior, Shanghai's Yangshan and Waigaoqiao terminals were bustling with activity as ships hurried to load containers in a frantic attempt to finish shipments and depart before the new tariffs took effect, as noted in the RFA report.

Similar situations are unfolding at the Yantian terminal in Shenzhen, Guangdong, remarked Qian, a businessman from Guangdong who is now in Shanghai and has observed the effects at the port of Shanghai, as highlighted by RFA.