Story perspectives

U.S. Tariff Changes Spark Shipping Volatility and Decline

9/17/2025

Summary

Story summary

The U.S. suspended the de minimis regime on August 29, imposing full customs duties on goods previously exempt under the $800 threshold, affecting shipping volumes.
Shipping costs from South Korea to the U.S. decreased in August, with rates falling 3.9% for the west coast and 7.5% for the east coast amid tariff uncertainties.
Air cargo exports from India to the U.S. declined sharply after tariffs doubled to 50%, with volumes down 12% in late August and 14% in early September.
Exporters are shifting cargo to Europe, with air freight from India to Europe rising 8% year-over-year, while Sri Lanka's exports to the U.S. increased significantly.
Freight rates from India to the U.S. dropped below $4 per kilogram, reflecting a broader decline in exports amid heightened tariffs.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 significantly raised U.S. tariffs, resulting in a 66% decline in international trade. In August 2023, the U.S. reinstated full customs duties on goods under $800, reminiscent of past protectionist policies. This change has led to a 12% drop in air cargo exports from India to the U.S., highlighting the ongoing impact of tariff measures on global trade dynamics.

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Story summary

The U.S. suspended the de minimis regime on August 29, imposing full customs duties on goods previously exempt under the $800 threshold, affecting shipping volumes.
Shipping costs from South Korea to the U.S. decreased in August, with rates falling 3.9% for the west coast and 7.5% for the east coast amid tariff uncertainties.
Air cargo exports from India to the U.S. declined sharply after tariffs doubled to 50%, with volumes down 12% in late August and 14% in early September.
Exporters are shifting cargo to Europe, with air freight from India to Europe rising 8% year-over-year, while Sri Lanka's exports to the U.S. increased significantly.
Freight rates from India to the U.S. dropped below $4 per kilogram, reflecting a broader decline in exports amid heightened tariffs.

1 / 2