US companies are facing higher shipping costs after major carriers announced rate hikes to import goods from China before a 90-day reprieve on tariffs expires. The rates will double, with containers from China to West Coast ports expected to cost $6,500 and those to East Coast ports $7,500.
The increases will squeeze profit margins and lead to higher prices for consumers. Jay Foreman, CEO of Basic Fun, which makes Tonka Trucks, estimates that the rate increase will double what it costs his company to ship its toys, affecting about 3% of their cost of goods.
Walmart has already warned that tariffs will result in higher consumer prices, despite President Trump’s warning to “eat the tariffs.” Another shipping rate hike is expected by June 15, according to a Journal of Commerce report.
The carriers are accused of gouging to make up for lost revenue after US companies curtailed shipments to avoid paying the 145% tariff imposed on China imports. The White House and Beijing reached a trade truce on May 12 that reduces tariffs to 30% until August 10.
Industry experts predict that shipping costs will continue to rise, straining supply chains. With ports already behind schedule by seven to 10 days, the logjam is expected to worsen as more ships are loaded and shipped out, leading to congestion on West Coast ports and delays in product flow.
Source: https://nypost.com/2025/05/23/business/shipping-costs-set-to-double-as-companies-rush-to-import-goods-before-china-us-trade-truce-ends