Nearshore News: Escalating U.S.–China Trade Tensions, Steel Tariff Hikes, and Agile Supply Chains

Trade tensions between the U.S. and China are escalating again, with both sides accusing each other of violating a fragile truce. President Trump’s vow to double steel and aluminum tariffs adds another layer of pressure, while Chinese officials warn of retaliation. Amid the uncertainty, companies are trying to adjust—some pulling forecasts, others adapting their supply chains. Logistics players like Portless are seeing opportunity in the chaos, positioning themselves as agile alternatives in an increasingly uncertain trade landscape.

Nearshore News Summary:

• President Trump accused China of violating the trade truce. According to the U.S. Trade Representative Jamieson Greer, China has not resumed exports of certain rare-earth materials that were expected under the deal.(The Washington Post)
• China accused the U.S. of 'seriously violating' the trade truce through actions such as restricting Huawei chips, halting sales of chip design software, and canceling visas for Chinese students. (Financial Times)
• President Trump announced plans to double tariffs on foreign steel and aluminum to 50%. (NYT)
• Logistics startup Portless, which aims to become a 'supply-chain-as-a-service' platform, has raised $18 million in Series A funding amid a surge in demand from brands affected by the end of the de minimis duty exemption. (Business Insider)

Trump accuses China of breaching trade agreement amid tariff turmoil

Published: June 1, 2025
Source: The Washington Post

President Trump accused China of violating a newly signed trade agreement, further destabilizing fragile negotiations to ease the escalating U.S.–China trade war. The accusation comes amid paused tariffs, halted exports, and ongoing legal and diplomatic tensions.

Key points:

• Trump’s Accusation: President Trump publicly accused China of breaching the recent bilateral trade deal, claiming on Truth Social that China “TOTALLY VIOLATED ITS AGREEMENT.”
• Agreement Under Pressure: The deal, which temporarily paused extreme tariff rates between the two countries, was seen as a short-term relief for businesses but now appears uncertain.
• Export Disputes: U.S. Trade Representative Jamieson Greer noted that China hasn’t resumed exports of critical rare-earth materials, possibly violating the agreement’s terms.
• U.S. Response: The U.S. has reportedly begun restricting semiconductor and aviation-related exports to China, adding to rising tensions.
• Ongoing Talks: Despite the tensions, both sides are continuing negotiations, and Trump expressed willingness to speak with President Xi to “work it out.”

China accuses US of ‘seriously violating’ trade truce and vows to respond

Published: June 2, 2025
Source: Financial Times

China accused the U.S. of “seriously violating” their recent trade truce and warned it will take strong action to defend its interests, as tensions between the two powers escalate again.

Key points:

• China’s Accusation: Beijing claims the U.S. has undermined the May 12 Geneva trade agreement by implementing “discriminatory and restrictive measures” that harm China’s legitimate rights.
• Cited U.S. Actions: China pointed to recent U.S. steps such as restrictions on Huawei chips, halts on chip design software sales, and visa cancellations for Chinese students.
• Rare Earth Exports at Issue: The U.S. expected China to ease rare earth export restrictions under the deal, but China has kept controls in place and only slowly resumed shipments, frustrating U.S. officials.
• China’s Warning: The commerce ministry said it will take “strong and resolute measures” if the U.S. continues to act unilaterally and provoke trade frictions.
• Ongoing Uncertainty: Trump expressed hope to resolve the dispute via a call with President Xi, though such a conversation has yet to happen.

Trump Pledges to Double Tariffs on Foreign Steel and Aluminum to 50%

Published: May 30, 2025
Source: NYT

President Trump announced plans to double tariffs on foreign steel and aluminum to 50%, aiming to further protect the U.S. industry. The announcement came during his visit to a U.S. Steel factory in Pennsylvania, where he also promoted a yet-to-be-finalized partnership between U.S. Steel and Japan’s Nippon Steel.

Key points:

• Tariff Increase: Trump said the new 50% tariffs would take effect June 4 and serve as a “big jolt” to American steel and aluminum workers. He claimed foreign firms had circumvented earlier tariffs.
• Deal with Nippon Steel: Trump touted a “planned partnership” between U.S. Steel and Nippon Steel, though details remain unclear. He emphasized the deal would keep control in U.S. hands but admitted he hadn’t seen the final version.
• Legal Context & Leverage: The move comes as many of Trump’s tariffs face legal scrutiny. The steel tariffs, issued under national security grounds, are unaffected by court rulings, offering Trump a more stable tool for trade leverage.
• Political & Economic Stakes: The potential merger has bipartisan support in Pennsylvania but faces union concerns. Trump framed the deal as an investment that would add jobs and boost the economy, despite past opposition to foreign acquisition of U.S. Steel.

This logistics startup is getting 'buried in inbound' from brands after de minimis ended. It just raised $18 million.

Published: May 29, 2025
Source: Business Insider

Logistics startup Portless has raised $18 million in Series A funding led by Commerce Ventures, as it experiences a surge in demand from brands affected by the end of the de minimis duty exemption. By shipping directly from fulfillment centers near manufacturers in China and Vietnam, Portless offers a faster, cash-efficient supply chain model inspired by Shein.

Key points:

• Funding & Growth: Portless raised $18M and plans to expand into India and broaden its supply chain services, including a new quality control feature and more fulfillment centers.
• Model & Strategy: It helps mid-market brands ship small batches quickly from Asia to the U.S., deferring duty payments using a Type 11 entry process. This is especially valuable post–de minimis.
• Market Fit: CEO Izzy Rosenzweig said the company is “buried in inbound” interest, as brands seek more flexible, demand-aligned logistics in response to tariff pressures.
• Vision: Portless aims to become a “supply-chain-as-a-service” platform, helping brands simplify operations and improve cash flow with real-time responsiveness to consumer demand.