New 25% Auto Tariffs Disrupt Trade; FEWB and TAWB Routes See Delays

Tariff Turbulence: Updates & Industry Reactions

Tariff Changes UnfoldJust a day after implementation, President Trump has temporarily suspended country-specific reciprocal tariffs for all U.S. trade partners except China. All other nations now return to the 10% universal baseline tariff introduced on April 5, effective for 90 days.

Meanwhile, China’s tariff rate has surged to 125%, up from the 84% announced Wednesday. In retaliation, China will impose an 84% tariff on U.S. goods starting April 10. The European Union, responding to the reversal, has suspended its own retaliatory measures.

White House Maritime StrategyIn tandem, the White House unveiled an Executive Order titled "Restoring America’s Maritime Dominance"—aimed at revitalizing U.S. shipbuilding and maritime jobs. A key goal is to close loopholes in the Harbor Maintenance Fee (HMF) collection process.

Previously, shippers avoided the HMF by routing cargo through Canada or Mexico, then trucking it into the U.S. The new order mandates that all foreign-origin cargo arriving by vessel must clear U.S. Customs at a U.S. port, and that cargo entering by land without substantial transformation will now incur standard duties plus a 10% CBP service fee.

Ocean Freight Market Updates

Trans-Pacific Eastbound (TPEB)

• Capacity & Demand: April capacity slashed by ~20% due to blank sailings and service suspensions. Demand is weakening as tariffs take effect.

• Equipment: No major container shortages.

• Rates: Floating rates extended through April. No PSS applied this month.

Far East Westbound (FEWB)

• Market Shifts: Some U.S. shippers diverting orders to Europe, slightly boosting volume.

• Capacity Adjustments: Ocean Alliance & Premier Alliance announcing new blank sailings from mid-to-late April. Early booking recommended.

• Rates: SCFI steady for 5 weeks. Carrier strategy pushes vessel utilization to 85–90%, supporting stable-to-slightly-increased rates.

Trans-Atlantic Westbound (TAWB)

• Capacity & Demand: Fewer blank sailings vs. March. East Med–U.S. lanes impacted. Congestion at major ports including Piraeus, Mersin, Valencia, Hamburg, Antwerp, and Rotterdam.

• Equipment: Shortages persist in Central Europe (Austria, Slovakia, Switzerland, Hungary, Eastern Germany). Consider carrier haulage. Mersin also facing scarcity.

• Rates:

  • North Europe: Most carriers cancel April PSS; some defer to June.

  • West Med: April PSS pushed to May.

  • East Med (Turkey): May PSS implemented due to rising demand forecasts.