Tit-for-Tat Tariffs May End, New Fee on Chinese Ships, Shein & Temu to Rise Prices

Big News 📣

Chinese Ships Face New Port Fees Under Trump

In a sharp escalation of the U.S.–China trade war, the Trump administration has finalized a plan to levy fees on Chinese-built and Chinese-owned vessels docking at U.S. ports, aimed squarely at reviving America’s waning shipbuilding sector.

Starting in October 2025, these ships will be charged $50 per net ton, with the rate climbing to $140 by 2028. Car carriers not made in the U.S. will face $150 per vehicle, and a second phase in 2028 will impose LNG shipping restrictions on foreign-built vessels.

Originally floated as a flat $1M-per-port call fee, the proposal has now been softened to a per-voyage, volume-based model. Shippers can defer fees for three years by ordering U.S.-built ships.

Freight carriers warn of Covid-era rate surges, supply chain gridlocks, and rerouted cargo as a new trade storm brews at sea.

• Proof of Ordering 🚢 : Shipowners can delay fees for three years if they show proof of ordering a U.S.-built vessel

• Detour ⚓️ : Shippers are rerouting vessels away from the U.S. to European ports, with Chinese imports into the UK and EU rising 12–15% in Q1 2025

• Exceptions ✅ : Empty vessels that arrive at US ports to carry bulk exports like coal or grain are exempted. Vessels that move goods between American ports, as well as from those ports to Caribbean islands and US territories, are also exempted from rules

Suggested Reading: Can America Build Great Ships Again?

Retail Sales Increase in March as Americans Stock Up

Retail sales in the U.S. jumped 1.4% in March, outpacing expectations of 1.2%, as consumers rushed to buy big-ticket items ahead of looming tariffs. Auto-related sales surged 5.3%, driving much of the gain, while spending on food services, hobbies, and home improvement also rose.

Economists say the spike reflects fear of future price hikes, not underlying economic strength. The rush came amid record-low consumer sentiment and high inflation expectations, highlighting the public's anxiety over Trump’s trade war.

Retailers like Walmart and Amazon are warning of price volatility and supplier disruptions. Analysts believe this burst in spending may be short-lived as tariffs tighten household budgets in the coming months.

All is not good 🔴 : The National Retail Federation projects that retail spending growth will slow to between 2.7% and 3.7% in 2025, down from 3.6% in 2024

Trump Hints at Tariff Truce Between the US and China

President Trump has hinted at a possible softening of the ongoing tariff war with China, suggesting he may not pursue further hikes to avoid hurting consumer spending.

After slapping up to 245% tariffs on Chinese goods — a move that shook markets and drew sharp retaliation from Beijing— Trump now appears more cautious, saying, “At a certain point, people aren’t gonna buy.”

While the White House maintains that China has been in contact since the tariff rollout, formal negotiations remain limited. The president also said that a decision on TikTok’s U.S. future will wait until trade issues are resolved.

Meanwhile, China’s Commerce Ministry has condemned the tariffs as irrational and vowed to “fight to the end,” rejecting any talks that lack mutual respect.

MSC Considers Splitting Panama Ports From Hutchison Deal

Mediterranean Shipping Co. (MSC) and BlackRock are exploring a potential carve-out of two Panama Canal ports from their $22.8 billion bid to acquire terminals from Hong Kong’s CK Hutchison.

The ports — strategically sensitive amid escalating U.S.-China trade tensions — have stalled the deal, originally set to close April 2. The rest of the transaction, covering 41 global ports, faces fewer hurdles and could close within six months.

The Panama portion, with its reversed ownership structure favoring U.S. control, has drawn political and legal scrutiny in both Panama and Beijing. A final resolution could take up to a year.

If finalized, the deal would cement MSC as not only the largest container shipping line but also one of the largest global port operators, with expanded control from Singapore to Long Beach.

TLDR 🗓️

Shein and Temu to Raise U.S. Prices as Trump Ends Import Loophole

Chinese fast-fashion giants Shein and Temu have announced price hikes for U.S. consumers beginning April 25, citing rising costs from President Trump’s new tariff policy and the elimination of the "de minimis" import exemption.

The move comes as the administration enforces a 145% tariff on Chinese imports and closes a loophole that previously allowed goods under $800 to enter the U.S. duty-free.

The exemption had fueled explosive growth for both platforms, enabling over 1 billion small parcels from China to reach American consumers in 2023 alone. With those shipments now subject to full duties, both companies say they're being forced to pass on costs. “We’re doing everything we can to keep prices low,” Shein noted in a message to shoppers, while Temu echoed the same, citing rising operational expenses.

Hong Kong Suspends Package Deliveries to U.S. as Tariff War Escalates

In a sharp retaliation against President Trump’s latest tariff move and closing of De Minimis, Hong Kong’s government has halted its package postal service to the United States.

Starting immediately, Hongkong Post will stop accepting sea freight packages bound for the U.S., and airborne packages will be halted beginning April 27. Letters and document-only mail remain unaffected. The city’s government condemned the U.S. action as “bullying,” warning consumers to prepare for surging delivery costs as private couriers like FedEx and DHL take over.

Hong Kong, now subject to the same 145% tariffs as mainland China, has lost its special U.S. trade status. Its leader, John Lee, accused Washington of "reckless economic warfare" and announced plans to challenge the tariffs at the World Trade Organization.

Trump Orders Tariff Probe on Critical Mineral Imports Amid China Tensions

In a fresh escalation of U.S.–China trade tensions, President Trump has launched a Section 232 national security investigation into tariffs on all critical mineral imports, citing America’s overreliance on China and other nations for vital raw materials like cobalt, rare earths, nickel, lithium, and uranium.

The move follows Beijing’s retaliatory export restrictions on rare earths earlier this month and reflects Washington’s growing concerns over its fragile domestic supply chains. Trump stated the U.S.’s dependency “raises risks to national security, defense readiness, price stability, and economic resilience.” The probe could result in broad tariffs on mineral imports, echoing past Section 232 actions on steel and aluminum.

Currently, the U.S. has limited processing capacity for key minerals, despite having some domestic mines. If tariffs are approved, they would significantly raise the cost of mineral-dependent sectors, including EVs, electronics, and defense, further complicating supply chains already strained by the ongoing trade war.

Suggested Reading: Who will win the global critical mineral race?

Amazon Joins the LTL Freight Game

Amazon has officially stepped into the U.S. less-than-truckload (LTL) market, offering a new service for inbound shipments to its fulfillment centers.

Accessible via a self-service portal, the LTL option lets customers get quotes, compare full truckload vs. LTL rates, and track shipments — all backed by Amazon’s vast network of 60,000 trailers.

While the current offering is limited to inbound freight, the company says it’s listening closely to shippers' needs. The move builds on Amazon’s earlier LTL rollouts in the UK and Germany, and industry experts believe it could shake up a market long dominated by legacy players.

Hermès to Raise U.S. Prices Amid Trump’s 10% Tariff

Starting May 1, French luxury house Hermès will hike prices across its U.S. catalog—including iconic Birkin bags and signature silk scarves — to fully offset the impact of President Trump’s 10% universal import tariff.

The company announced the move during an analyst call, noting the price adjustment applies only to the current 10% tariff and does not yet factor in the potential 20% tariffs facing EU goods. Hermès emphasized its actions to preserve margins without compromising its premium image.

The news comes days after Hermès surpassed LVMH to become the world’s most valuable luxury company by market cap.

China Shifts to Canada for Crude Amid U.S. Trade War

As U.S.–China trade tensions hit new highs, Chinese refiners are turning away from American oil, slashing imports by 90%, and pivoting instead to record volumes of Canadian crude.

According to Bloomberg, the Trans Mountain pipeline expansion, completed in 2023, is enabling Alberta’s oil to now reach Asian markets more easily via British Columbia’s Pacific ports. In March alone, the report stated that China imported 7.3 million barrels of Canadian oil, more than double its average a year ago.

Meanwhile, Chinese purchases of U.S. crude have dropped from a peak of 29 million barrels to just 3 million. The trade war—and especially President Trump’s 145% tariffs on Chinese goods—has disrupted longstanding energy flows, pushing Beijing to diversify suppliers.

Industry experts say Canadian crude, while smaller in volume compared to Middle East or Russian sources, is attractive to Chinese refiners because it’s cheaper and well-suited for advanced refining systems.

U.K. Retailers Brace for Chinese ‘Dumping’ Amid U.S. Tariffs

As Trump’s 145% tariff wall slams shut access to the U.S., British retailers are warning that cheap Chinese goods could flood into the U.K. instead. Platforms like Shein and Temu, cut off from duty-free entry into the U.S., are now redirecting exports to Europe.

Retailers worry this rerouting—fueled by the end of America’s $800 de minimis loophole—will crush local discount chains like Primark and B&M. Calls are growing to scrap the U.K.’s own £135 tax exemption. Industry groups argue the loophole lets billions worth of goods dodge duties and VAT, creating an unfair edge.

U.S. Industrial Production Dips in March, but Q1 Stays Resilient

According to the Federal Reserve’s March report, U.S. industrial production declined by 0.3%, largely due to a steep 5.8% drop in utility output caused by unseasonably warm weather.

Despite the monthly setback, overall industrial activity rose at a healthy annualized rate of 5.5% in the first quarter. Manufacturing and mining posted modest gains in March — up 0.3% and 0.6% respectively—while capacity utilization slipped slightly to 77.8%, still below its long-term average.

Growth in durable goods, especially autos and aerospace, helped offset flat output in nondurables. Utilities output, though weak in March, showed strong gains over the quarter.

Tidbits 🍿

• The U.S. has launched new investigations into computer chips and pharmaceuticals under national security grounds, laying the groundwork for sector-specific tariffs

• According to Sensor Tower, Temu slashed its U.S. ad spend by 31% across platforms like Facebook, TikTok, and YouTube between March 31 and April 13. Shein cut its digital ad spend by 19% over the same period. The drop comes as both brands brace for rising costs under new U.S. tariffs

• Global trade is taking a hit — the WTO now expects it to shrink by 0.2% in 2025, thanks to all the tariff chaos from Trump’s latest moves. North American exports are set to drop big time, with a 12.6% fall on the cards.

• A U.S. judge has ruled Google holds an illegal monopoly in online ad tech, marking its second major antitrust loss in a year. The decision could lead to structural changes—or even a breakup of parts of Alphabet, Google's parent company.

Reading List 📚 :

This week's top book picks from CrossDock 📖:

• Endurance by Alfred Lansing

• Crashed by Adam Tooze

Do you have recommendations? Drop us a message, and we will add it to next week’s list.

This newsletter was curated by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!