China and US Reach Consensus on Reciprocal Tariff Cuts for $30 Billion in Goods Each; Trans-Pacific Freight Rates Surge in a Single Week

On June 3, a spokesperson for China's Ministry of Commerce stated that, under the strategic guidance of the two heads of state, China-US economic and trade teams have reached a consensus in principle on reciprocal tariff cuts covering $30 billion or more in goods for each side under the "Trade Council" framework. This mechanism will determine the specific product lists and implementation rules to facilitate the swift implementation of the tariff cuts, while the US side is urged to abandon unilateral protectionism and fulfill its commitments. These de-escalation measures are being advanced alongside the outcomes of May's consultations: China has agreed to resume the commercial purchase of 200 Boeing aircraft, commit to purchasing $17 billion worth of US agricultural products annually from 2026 to 2028, and restore market access for US beef and poultry exports to China. The US side, in turn, is to advance the resolution of automatic detention issues for Chinese dairy and aquatic products and maintain communication on the rare earth supply chain. This marks a shift in China-US economic and trade relations from "confrontation" to "competition and cooperation." Stimulated by the expectation of tariff cuts, cargo volumes on the Trans-Pacific routes have rebounded. The latest freight rate from the Far East to the US West Coast has risen to $4,149 per FEU, a weekly increase of 31.54%; the rate to the US East Coast has risen to $5,333 per FEU, a weekly increase of 23.64%. CMA CGM and Hapag-Lloyd have successively announced the imposition of a $500 per TEU peak season surcharge. It is recommended that US-involved foreign trade and freight forwarding companies closely monitor the announcement of the tariff reduction list, secure shipping space in advance, and assess opportunities for order repatriation. [This article is sourced from Ebrun Go. An automated writing robot developed by Ebrun, delivering e-commerce intelligence via algorithm in the fastest way. This dog is still very young; welcome to contact run@ebrun.com or leave a message to help it grow.]