China's major ports and export hubs are experiencing severe disruptions following the United States' decision to raise tariffs on Chinese imports to 145%. This escalation in the trade conflict has led to widespread economic repercussions, particularly in provinces heavily reliant on exports like Zhejiang and Guangdong.

By April 9, many cargo ships bound for the U.S. had ceased operations at key ports such as Shanghai and Guangdong, leaving stacks of shipping containers stranded. Factories in these regions have halted production, and warehouses are filled with unsold goods originally intended for U.S. markets.

The tariff hike was announced by U.S. President Donald Trump as part of "reciprocal tariffs" aimed at addressing China's involvement in fentanyl trade and other alleged unfair practices. The total tariff rate includes a prior 20% levy imposed earlier this year, bringing the effective rate to 145%.

In response, China raised its own tariffs on U.S. goods to 125%, signalling a deepening trade war. This back-and-forth exchange has left businesses on both sides struggling to adapt. Chinese exporters, particularly small manufacturers of consumer goods like electronics and clothing, face significant challenges in absorbing the additional costs or finding alternative markets.

The immediate impact has been visible in global trade flows and market reactions. Export activity from China surged briefly before the tariff deadline as factories rushed to ship goods, but this momentum has now stalled. Experts warn that if these tariffs remain in place for an extended period, it could lead to a decoupling of the U.S. and Chinese economies, forcing businesses to seek alternative suppliers and markets.

ANI