As trade talks between the U.S. and China continue, no new agreement was reached before the scheduled increase on May 10, 2019, increasing tariffs from 10% to 25%. However, the increase will affect only goods that were exported from China after midnight last night (EST), according to the official Federal Register Notice. All current “on water” shipments from China will be allowed to enter the U.S. at prevailing tariff rates, regardless of the arrival date.

According to Harlan Stone, group CEO of Halstead/Metroflor, “The average transit by sea from China ports to U.S. ports is 35 days (+/- 3 days). This means there is a 5-6 week window for the negotiations to continue without any impact on U.S. consumers, businesses, or the overall economy. This is a good thing. High level trade negotiations are expected to continue in Washington D.C. today. The goal of these discussions has never changed: come to an agreement that allows for more open, fair, and increased trade between the world’s two largest economies.”

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