FedEx and UPS are adjusting their demand-based surcharges for shipments from China/Hong Kong to the USA with effect from next week amid warnings of a possible sudden slump in transpacific demand due to the escalating tariff conflict between the two economic superpowers.
President Trump has now raised tariffs on shipments from China to a total of 104% after China retaliated with its own tariff increases to his imposition of a 34% levy as of April 9 on top of an existing 20% rate. In parallel, de minimis duty-free imports of low-value goods from China/Hong Kong to the US have been scrapped.
Analysts have warned that this effective price doubling will force Chinese retailers to switch inventory either to other export markets such as Europe or to domestic consumption.
Surcharge adjustments
In view of this fast-changing situation, the two US integrators have each informed customers about adjustments to their demand-related surcharges on affected trade lanes.
FedEx China announced that the company’s demand surcharge for exports to the US, Canada, Mexico and Puerto Rico will be adjusted for the period of April 15 to May 2 to RMB 7.20 per kg. There is a surcharge of HK$7.80 per kg for shipments from Hong Kong.
This surcharge covers the following parcel services: FedEx Envelope, FedEx Pak, FedEx International Priority (IP), FedEx International Priority Express (IPE), FedEx International Economy (IE), FedEx International First (IF), FedEx 10kg Box, FedEx 25kg Box, FedEx International Connect Plus (FICP).
FedEx had previously charged RMB 15.90 per kg between October 28, 2024, and January 31, 2025. This period covered the end-of-year peak season ahead of the traditional low season during the Chinese Lunar New Year holiday period.
Europe unchanged
