Transpacific Freight Rates Rise Amid US-China Tariff Truce, Port Congestion

Recent developments in U.S. trade policy show a cautious easing of tensions amid ongoing tariff disputes. Transpacific container freight rates have risen moderately as carriers restore capacity in response to a temporary surge in U.S.-bound demand, triggered by a 90-day tariff truce between the U.S. and China, though port congestion and cargo backlogs remain challenges. President Donald Trump has deferred a proposed 50% tariff on European Union imports, extending the negotiation deadline to July 9, which has been welcomed by financial markets but leaves future U.S.-EU trade relations uncertain. Trump's tariff policies, including previous tariffs on Mexico, Canada, and China, have caused significant disruptions across various industries and global markets, with ongoing negotiations aimed at easing tensions. Emphasizing domestic manufacturing, Trump has shifted focus toward technology and military equipment production rather than textiles, a move that has drawn concern from industry groups over the economic impact of tariffs. Regional discussions, such as those at the ASEAN Summit, highlight the broader effort to manage disruptions caused by U.S. tariffs and explore collaborative solutions.