August 1st Tariffs: What Shippers Need to Know About Trade Deals

Summary of Key Trade Deals

Key Trade Agreements: New Tariffs, New Opportunities

 European Union

• New U.S. tariff: 15% (was 10%)
• Reduced automotive tariffs by 10% (down from 25%)
• Possible steel and aluminum tariff reductions through quota agreements
• EU commits to:
• Large-scale U.S. energy purchases
• Low or zero tariffs on most U.S. exports
• Implementation expected August 1, pending final documentation

Japan

• U.S. tariff rate set at 15%, including vehicles
• Japan agrees to invest in U.S. manufacturing and energy

Other Countries

• Vietnam: Deal set at 20%
• Indonesia & Philippines: Agreements set at 19%
• UK: Previously reached agreement already in effect

These agreements now cover ~30% of total U.S. goods imports for 2024, providing significant relief to many importers working heavily with this countries.

Still in Progress: Canada, Mexico, and China

While the recent deals offer some relief, discussions with the U.S.’s top trade partners are still underway. These three account for over 40% of U.S. imports and remain at the heart of the trade policy puzzle.

Canada & Mexico

• Facing 30% tariffs starting August 1st if no agreement is reached
• Ongoing negotiations could lead to partial exemptions or delays

China

• Current tariff baseline: 30% (reduced from a staggering 145% in May)
• Many goods still subject to higher legacy tariffs
• U.S. and Chinese officials are meeting in Stockholm this week to negotiate
• An additional 90-day extension of the current regime is expected by the August 12th deadline.

With these high-stakes talks continuing, shippers should monitor developments closely, as outcomes will shape Q4 freight strategies.

The U.S.-China tariff adjustment in May drove a rapid but short-lived surge in transpacific activity. Rates have since normalized, and carriers are adjusting to lower demand by trimming capacity.

Asia–U.S. Freight

• May: Tariffs cut from 145% to 30%, triggering demand spike
• Rates peaked at $6,000/FEU in mid-June
• By mid-July: Back down to $2,300/FEU West Coast
• Rates dropped 30% from mid-june highs and are back down to $4,113/FEU East Coast
• Compared to 2023 both lanes (East Coast/West Coast) are down 55%
• Carriers have:
• Removed capacity
• Cancelled planned GRIs (General Rate Increases)
• Some carriers however are introducing a $500/FEU peak season surcharge for August
• A possible 90-day extension could:
• Spur late-season bookings
• Slightly lift rates
• “Peak of peak season” is likely over

The constant flux of tariff announcements, pauses, and looming threats has significantly disrupted typical freight flows in 2024. In response to the uncertainty, many importers chose to frontload shipments earlier in the year as a hedge against the potential implementation of 30% tariffs. At the same time, others—particularly those importing from China—opted to pause activity altogether when tariff rates spiked, waiting for clearer guidance. This combination of aggressive early shipping and cautious delays led to highly irregular seasonal demand and unpredictable rate trends across major lanes.



While many of the new trade deals include elevated tariff levels, they also introduce a degree of stability that allows shippers to plan with more confidence. However, companies that built up inventory in anticipation of rate increases may still delay rebooking freight until those stock levels return to normal. As a result, a full return to standard seasonal patterns may take some time.

 Final Insights for TLI Clients

Tariff clarity, while costly, is better than uncertainty. The trade deals now taking shape offer predictability that your business can plan around. But volatility hasn’t disappeared — shippers must continue to remain agile and strategic.

Key Takeaways

• Use current stability to optimize routing and inventory decisions
• Watch for signs of rate rebounds in August on lanes impacted by frontloading
• Adjust expectations: Volume and rate spikes may be muted
• Maintain visibility into the ongoing negotiations with Canada, Mexico, and China

At Translogistics, we’re committed to helping you navigate this tariff season. Our experts are tracking developments daily to ensure your supply chain strategy stays one step ahead. Please be sure to continue monitoring our blog posts and subscribe to our newsletter.