Shanghai [China], April 14 (ANI): The impact of rising tensions between the United States and China is being felt across China’s major ports and manufacturing hubs, as the latest round of US tariff hikes, reaching 145%, begins to cripple trade flows and stall factory activity, Radio Free Asia (RFA) reported.
As of Thursday, cargo traffic to the US has come to a near standstill at previously bustling ports such as Shanghai and Guangdong, while warehouses and production lines in key export provinces like Zhejiang and Guangdong are effectively shut down.
Ports in Limbo, Containers Pile Up
Business owners and port officials confirmed that shipping containers, which missed the April 9 export deadline for US-bound shipments, are now piling up at port terminals. Warehouses are reportedly full of goods meant for the US market, now left untouched as companies scramble to reassess their supply chains.
Factory Shutdowns in Export Powerhouses
Factories in Zhejiang and Guangdong, which together account for the largest share of China’s exports, have halted operations, with some businesses fearing long-term disruptions. The sudden halt in export activity has created bottlenecks throughout the logistics sector, choking production lines dependent on predictable trade routes.
Tariffs Soar to 145%
On Wednesday, US President Donald Trump announced a significant hike in “reciprocal tariffs” on Chinese imports to 125%, effective immediately. When combined with an earlier 20% tariff imposed over China’s alleged role in the fentanyl trade, the total tariff burden on Chinese goods now stands at 145%, according to White House officials.
The conflict was sparked on February 4, when the US introduced a 10% tariff, citing China’s involvement in the export of fentanyl, a synthetic opioid blamed for a surge in US overdose deaths.
Race Against Time Before Tariff Deadline
Just before the new tariffs took effect, terminals such as Yangshan and Waigaoqiao in Shanghai witnessed a frantic surge in loading activity, with exporters rushing to dispatch goods before the window closed.
A similar scene was observed at the Yantian terminal in Shenzhen, Guangdong. Qian, a Guangdong-based businessman currently in Shanghai, confirmed the visible slowdown, telling RFA:
“The pace at the port has shifted dramatically. You can see containers just sitting there. Factories aren’t even trying to move inventory now.”
Outlook and Escalation Fears
With goods stranded, production lines halted, and trade uncertainty looming, the situation has triggered widespread concerns about the broader economic impact on China’s manufacturing sector, as well as on global supply chains.
The escalating tariff war between the two economic giants now threatens to reshape global trade dynamics, with businesses, consumers, and economies worldwide bracing for the ripple effects.
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