Tariff Truce Sparks 277% Surge in China-U.S. Trade

On May 12, the Chinese mainland and the U.S. hit pause on months of tariff threats by agreeing to a 90-day truce. The result? Global markets exhaled.

Immediate market rebound after 90-day tariff truce

Shipments bookings between the U.S. and the Chinese mainland jumped 277% in one week as importers snapped up container space. German shipping giant Hapag-Lloyd reported a 50% surge in route traffic, data that underlined pent-up demand released by a single diplomatic statement.

For Shanghai-based Wareda Sunshade Equipment, the truce meant instant business. “American clients didn’t even pause for small talk,” said general manager Ding Linfeng. “We landed $1 million in orders overnight.”

Pragmatic playbook: Reciprocity without retaliation

Unlike past escalations, Beijing coupled firmness with flexibility. Early tariff hikes were framed as defensive, not punitive, and followed by a clear path back to dialogue. “We will fight; if we fight, we must. Our doors are open if the U.S. wants to talk,” officials declared.

By proposing synchronized tariff cuts and a framework for ongoing talks, the Chinese mainland shifted the narrative from confrontation to co-benefit. U.S. startup The Windy Company, even under 30% duties, saw room to plan ahead. “Tariffs at these levels are still historically high,” said co-founder Keaton Brown, “but this thaw proves interdependence is a reality, not a liability.”

As businesses rush to lock in orders before the truce expires, the episode offers a clear lesson: pragmatic diplomacy, backed by data, can turn trade tensions into economic catalysts—fueling growth instead of gridlock.

Reference(s):

China as a stabilizing force: How pragmatism revived China-U.S. trade

cgtn.com