Global Shipping Faces Uncertainty Amid U.S. Tariffs, Geopolitical Tensions

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The global ocean shipping industry, responsible for 80% of world trade, is navigating turbulence as U.S. President Donald Trump intensifies trade and geopolitical tensions.

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Trump on March 4 imposed a 10% tariff on Chinese goods and proposed million-dollar port fees for Chinese-built vessels. Additional tariffs on Mexican avocados, tequila, Canadian beef, lumber, and oil also took effect March 4, with further 25% duties on EU imports under consideration.

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Industry leaders warn that higher tariffs and port fees could slow global trade, weaken container shipping demand, and increase consumer prices. Shipping costs also are rising due to climate change-related severe weather and shipping route disruptions caused by Houthi militant attacks near the Suez Canal.

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The U.S. Trade Representative's February 21 proposal to levy up to $1.5 million in fees on Chinese-built ships could further shake the industry.

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Experts caution that the economic burden will hit U.S. importers, exporters, and consumers, potentially benefiting Taiwanese and South Korean liner operators. The geopolitical landscape remains volatile, leaving freight rates unpredictable. Jefferies analysts predict moderate rate fluctuations in 2025, but industry leaders remain concerned.

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With global trade uncertainty rising, container carriers and logistics firms must navigate shifting policies and economic challenges, making this a crucial moment for the industry’s future.

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Read More at Reuters

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