An ongoing trade war may continue, with China issuing US trading probes investigating trade practices. China will launch two investigations, including an examination of whether US measures are disrupting global supply chains. The second probe will examine whether US policies are hindering Chinese exports of green goods. This further includes restrictions on the exportation of renewable goods from China and limitations on cooperation in green technologies. Both of the investigations will last over the next six months, with a potential three-month extension. With both countries going back and forth over the last year, this latest development can significantly impact international shipping.
Why Is China Issuing US Trading Probes?
A primary reason China issues trade probes is to respond directly to the Trump Administration’s Section 301 investigations. On March 11, Trump announced a series of Section 301 investigations under the Trade Act of 1974. China was one of dozens of trading partners the US investigated for unfair trade practices. China is also issuing probes to challenge restrictions on US exports of advanced technologies and to combat US barriers to imports of Chinese energy technology. Another goal is for China to get leverage ahead of the upcoming meeting between President Trump and President Xi. The meeting will take place in Beijing, China, on May 14 and May 15, to stabilize the trade relationship.
What Could The Probes Mean For International Shipping?
With China and the US being the world’s largest trading partners, the probes could have a major impact on trade. A probe could prompt China to impose tariffs on US exports, potentially raising costs for US exporters. In 2026, both countries threatened levies of over 100% before reaching a trade deal. In addition to levies, the probes could result in new trade restrictions that may affect supply chains. There is also a fear that Trump could respond by issuing more probes into China, separate from Section 301. In turn, this will increase costs for importers and exporters in both countries.
When moving cargo internationally, various scenarios may arise that impact cargo movement. While the situation may be alarming, it should not stop the flow of goods in and out of the US. Shippers should, however, be prepared for anything that may disrupt supply chains. In addition to staying current with the news, preparation can be done by speaking with a 3PL (Third-Party Logistics) provider. 3PLs are companies that handle various parts of the supply chain on behalf of a shipper. They do this by offering solutions such as customs clearance, international and domestic shipping, warehousing, and more. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-912-0631 to learn about our 3PL services for ensuring a successful shipment.
