Global shipping giant Hapag-Lloyd’s spokesperson stated on Wednesday (April 23) that 30% of the company’s customers’ goods bound from China to the United States have been cancelled due to the trade conflict between the world’s two major economies.
The spokesperson of this container shipping group headquartered in Germany told Reuters that, conversely, there has been a “significant increase” in demand for goods from Thailand, Cambodia, and Vietnam.
China is a major production center for electronic products, toys, and clothing, among others. With increasing tensions between the US and China, these countries have become popular alternative manufacturing hubs for Chinese industries.
The Chinese Communist Party refuses to abandon unfair trade practices, while US President Trump currently imposes a 145% tariff on Chinese goods. In retaliation, China has imposed a 125% tariff on US goods.
The Hapag-Lloyd spokesperson mentioned that the company is employing smaller vessels in certain cases to transport goods to the US while keeping the number of voyages consistent.
The company’s spokesperson informed The Washington Post that despite a significant increase in orders from Southeast Asia, “the Southeast Asian market is smaller than the Chinese market, so the growth in Southeast Asian orders cannot make up for the cancellations in Chinese orders.”
According to Hapag-Lloyd speaking to The Washington Post, customers have been canceling orders on a large scale since April 2, when Trump unveiled a global “reciprocal” tariff policy.
Hapag-Lloyd has a market value of approximately $27 billion and has warned in its 2025 forecast that this year’s profits may be impacted.
As global leaders engage in negotiations with Washington, President Trump has temporarily suspended most of the previously announced reciprocal tariffs for 90 days, only implementing a 10% baseline tariff, while maintaining the 145% tariff on China.
The International Monetary Fund (IMF) warned on Tuesday that the high tariffs imposed by Trump on nearly all trading partners are beginning to have an impact, leading to a slowdown in global economic output in the coming months, while Trump remains optimistic. He stated later on Tuesday that negotiations with China are progressing well because “everyone wants to be part of” the US market. The President insisted that Beijing will ultimately be forced to reach some form of agreement to reduce the substantial tariffs.
The President has also retracted his earlier warnings about firing Federal Reserve Chairman Jerome Powell, and his administration’s hints at a possible easing of US-China trade tensions soon have driven a strong rebound in the US stock market from Tuesday afternoon to Wednesday morning.