[Source/Observer Network Chen Sijia] Under the pressure of Trump's tariffs, American retail giants such as Walmart once required Chinese parties to bear the cost of tariffs. They agreed to bear all the tariff costs themselves only after being interviewed by relevant departments of China's Ministry of Commerce and other institutions. However, last month, after China and the US agreed to suspend the implementation of tariffs within 90 days, it was reported that these American retail giants went back on their word. Not only do they want Chinese suppliers to share the tariff costs, but they also want to pass on the freight costs.

Recently, many American importers have taken advantage of the tariff suspension window period to stock up in large quantities, causing shipping prices to soar. According to a report by the South China Morning Post on June 7, sources from Chinese export companies revealed that as freight costs increase, American retail giants are trying to exert pressure on Chinese enterprises, asking Chinese suppliers to share freight costs. American retailers want Chinese enterprises to absorb more additional costs to cope with domestic pressure to maintain stable prices.

Sources from Zhejiang exporters said that in the past, major American retailers mainly bore the entire cost of transporting goods from China to the United States because these companies could control costs through their long-term cooperative relationships with shipping companies. However, the situation is now changing. American retail giants are requiring Chinese enterprises to absorb the extra costs brought about by the trade dispute. Some Zhejiang factories supplying American retailers are forced to bear part or even all of the freight costs.

A sales representative from Zhejiang Xinde Group told the South China Morning Post that since late May, the company has been paying 60% of the logistics costs for its exports to the United States.

Other industry sources previously disclosed that American retailers are trying to pressure Chinese suppliers, demanding that Chinese enterprises bear up to 66% of the U.S. tariff costs, which were previously paid by American buyers.

These sources stated that brands such as Walmart, Target, Nike, Puma, and Adidas are requesting Chinese and Southeast Asian suppliers to share most of the high tariffs, bearing 50% to 66% of the U.S. import tariff costs. American companies face immense domestic political pressure to "absorb tariffs" themselves to keep prices stable.

Sources said that American retailers have been negotiating with Chinese suppliers for weeks on how to share the tariff costs, and the negotiations are still ongoing. The details of how the tariff costs will be shared have yet to be determined. Many Chinese suppliers find it difficult to bear such high cost-sharing, and some retailers are adjusting their supply chains. Some brands have already indicated that they will raise product prices.

Even before the agreement between U.S. and Chinese trade representatives in Geneva, it was reported that American retail giants wanted to shift the cost of tariffs onto Chinese suppliers. On March 11, China's Ministry of Commerce and other relevant departments interviewed Walmart regarding Walmart's request for significant price reductions from Chinese suppliers. Experts pointed out that Walmart's actions may violate commercial contracts and disrupt normal market trading order.

May 28, Ningbo Zhoushan Port Visual China

In mid-May, China and the U.S. agreed to suspend the implementation of tariff measures within 90 days. Many American retailers took advantage of this window period to stockpile Chinese goods, causing global shipping prices to soar. It was reported that in June, some shipping companies on routes to the U.S. West Coast and East Coast charged $6,000 to $7,000 per container, nearly double the prices quoted at the end of May.

According to sources, the cost of transporting from Ningbo Zhoushan Port in Zhejiang to the U.S. West Coast rose to $3,000 last month, three times the price in April. Chinese exporters are concerned that many companies, including small suppliers, may struggle to afford the additional transportation costs due to low profit margins in traditional industries like apparel.

A manager from Zhejiang Sinotrans Company said that shipping prices are expected to remain above normal levels for the next few weeks. Shipping companies are still working to restore capacity reduced in April.

Ningbo Zhoushan Port, the world's third-largest container port, is taking measures to cope with a surge in export orders. According to previous reports by Zhejiang Daily, the "buying spree" by American enterprises has led to a sharp increase in cargo volume but insufficient capacity, resulting in rising maritime freight costs. Shipping companies are fully mobilizing their capacity, but it takes time for ships and containers to be deployed. Currently, there is still a shortage of tens of thousands of containers on the U.S. routes.

Anne Sophie, President of the Asia-Pacific Operations Center of shipping giant A.P. Moller-Maersk, said that the company previously reduced its U.S. route capacity by approximately 20% through "large ship-to-small ship swaps," and is now quickly returning large vessels to meet market demand.

At the 2025 Maritime Silk Road Ports Cooperation Forum held in Ningbo on May 27, Teng Yahui, Director and Deputy General Manager of Ningbo Zhoushan Port Co., Ltd., stated that in response to the recent significant reduction in U.S. tariffs, the volume of exports to the U.S. is expected to rebound significantly. By mid-June, each route to the U.S. can return to normal operations. Based on this, the company plans to take measures such as increasing cabin capacity, improving terminal productivity, and strengthening empty container support.

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Original source: https://www.toutiao.com/article/7513169962404446772/

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