What Current Tariff and Freight Conditions Mean for Shippers

Current tariff and freight conditions present a complex mix of cost opportunities and operational risks for importers and exporters. Manufacturers and distributors should consider the following implications:

• High Tariffs Persist – Plan Sourcing Strategically: The U.S.–China truce locked in steep tariffs rather than eliminating them. 55% import duties on Chinese goods will continue to inflate costs for U.S. importers. Companies must keep pursuing supply base diversification. Many have already shifted sourcing to Vietnam, India, Mexico and other locations that aren’t subject to such tariffs, a trend reflected in those countries’ double-digit export jumps to the U.S. Evaluate your supplier mix for tariff exposure – it may be prudent to qualify new vendors in tariff-free countries or negotiate cost sharing with Chinese partners. On the flip side, exporters in certain countries might gain an edge: for example, UK automotive and aerospace firms now face lower U.S. tariffs under the new bilateral deal (weforum.org), potentially opening up opportunities to reclaim lost sales. Ensure your sales teams and freight forwarders understand the latest duty rates so you can price competitively in each market.
• Use Tariff Mitigation Tools: Where shifting sourcing isn’t feasible, explore ways to mitigate the impact of duties. The resurgence of bonded warehouses and FTZ usage is telling – importers are parking goods in bonded storage to defer duty payments. This can improve cash flow and even reduce ultimate tariff costs if some inventory is later re-exported or if tariff rates change before goods enter U.S. commerce. Setting up an FTZ or bonded warehouse program requires planning (and these facilities charge premiums), but for high-tariff goods (some categories now face combined duties well above 50%), the savings can be substantial (warehousequote.com). Additionally, stay alert to legal developments: courts are reviewing the legality of certain U.S. emergency tariffs. There’s a possibility that some tariffs could be rolled back via litigation – for instance, the 20% fentanyl-related tariff on China was challenged in May – which might entitle importers to refunds. Partner with customs brokers or trade attorneys to file duty refund claims and use tariff engineering strategies (like adjusting product classifications or minor assembly in FTZs) where appropriate.
• Take Advantage of Easing Freight Costs – but Hedge Against Volatility: Compared to the supply chain crunch of a couple years ago, current logistics costs are markedly lower in many areas. Ocean freight spot rates on major lanes are 10–20% cheaper than last summer, and domestic trucking rates are near multi-year lows amid the capacity glut. This is a great time to negotiate long-term freight contracts or to lock in capacity at favorable rates. Large importers have been opportunistically pulling forward their Q3 orders to ship under the lower tariffs and cheaper transport in place now. If you have the flexibility (and warehouse space), advancing some shipments could save significant costs. However, don’t assume today’s conditions will last indefinitely. There is still potential for rate swings. For example, if the U.S.–China tariff ceasefire lapses in August without extension, we could see another scramble for space (and a bump in spot rates) before higher duties resume. Geopolitical shocks – like an escalation in the Middle East conflict – could send fuel prices soaring overnight, raising bunker surcharges for ocean and jet fuel costs for air. Build some buffers into your transportation budget. Consider multi-modal options too: you might ship a portion of cargo by ocean for economy, and a portion via faster air or expedited service to protect against unforeseen delays. A balanced logistics portfolio will help you react if conditions suddenly tighten.
• Monitor Geopolitical Hotspots and Reroute If Needed: The Israel–Iran conflict is a prime example of a wildcard that can impact supply chains. The recent exchange of strikes in the Middle East pushed Brent crude oil prices up over 13% in a day (settling ~7% higher) (reuters.com), a reminder of how quickly fuel costs can spike. Thus far, oil markets have avoided a “super spike” and key shipping lanes remain openfile-8ca5d51wrmsdbxsaxnwhtv. But importers/exporters should have contingency plans if things worsen. Iran has threatened to close the Strait of Hormuz, a chokepoint carrying ~20% of the world’s oil (roughly 18 million barrels per day). A closure would be extremely disruptive – affecting not just petroleum shipments but also container routes in the Gulf. While such a drastic move is considered a last resort, many commercial vessels are already avoiding Iranian waters near Hormuz as a precaution. If your supply chain involves Middle Eastern ports or sourcing, stay in close contact with carriers and 3PLs about routing options. Ships can be re-routed around the Cape of Good Hope or via pipeline alternatives, but at added time and expense. Likewise, keep an eye on other flashpoints (e.g. the Russia–Ukraine war’s impact on air corridors and insurance costs, or any renewed labor strikes at ports in Europe which have caused backups ). In short, global shippers must remain agile. Build resiliency by qualifying alternate suppliers in different regions and diversifying your carrier base. If 2025 has taught us anything, it’s to expect the unexpected in trade and transport.

Bottom Line: Despite the challenges, these conditions also present opportunities for those who prepare. Companies that proactively manage tariffs (through smart sourcing and duty mitigation) and optimize their logistics (locking in good rates, leveraging available capacity, and planning around geopolitical risks) can actually improve their supply chain cost efficiency this year. The key is staying informed and being ready to pivot.

Need help making sense of it all? Euro-American Worldwide Logistics is closely monitoring these fast-moving developments. We’re advising clients on tariff strategy, offering creative shipping solutions, and securing capacity at the best rates. Now is the time to review your logistics plans for the coming months. Contact Euro-American Worldwide Logistics today for an expert consultation on navigating tariffs and optimizing your freight operations – so you can protect your margins and keep your supply chain moving smoothly.