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US tariffs on China causing container and space shortages; India scrambles
Industry News- Jun 29,24
US tariffs on Chinese goods come into effect from August 1.
Indian exporters are experiencing container shortages and limited shipping space as Chinese exporters rush to ship goods before the new US tariffs on Chinese imports take effect on August 1, sources revealed during a review meeting chaired by Commerce Minister Piyush Goyal.
This follows the US's announcement of increased tariffs on a range of Chinese imports, including electric vehicles, batteries, computer chips, and medical products. Tariffs on Chinese electric vehicles (EVs) were sharply increased to over 100%, and duties on semiconductors were raised to 50%.
During the review meeting, attended by senior commerce ministry officials, key export promotion councils, and Union Minister of State for Commerce and Industry Jitin Prasada, exporters raised concerns about port congestion and container shortages exacerbated by the rush to export Chinese goods before the tariffs are enforced.
“A stock-taking review meeting, planned to occur monthly, discussed several key issues faced by exporters. They highlighted problems such as the Red Sea crisis and container shortages since China is rushing to export its products before the tariffs take effect on August 1,” said a source.
Exporters also discussed rising non-tariff barriers potentially affecting Indian exports, such as the Carbon Border Adjustment Mechanism (CBAM), the European Union’s Deforestation Law, and the Ecodesign for Sustainable Products Regulation. They sought an extension of the interest equalisation scheme to mitigate high interest rates, the source added.
According to Reuters, global port congestion has reached an 18-month high, with 60% of ships waiting at anchor located in Asia. Ship timetables are disrupted due to missed schedules and fewer port calls, as vessels take longer routes around Africa to avoid the Red Sea, where Yemen’s Houthi group has been attacking shipping since November last year.
Exporters noted that congestion at Singapore’s container port is at its worst, with vessels rerouted to avoid Red Sea attacks, further disrupting global ocean shipping.
(Source: The Indian Express)
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