Flexport and the Impact of China Tariffs: What Businesses Need to Know

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china tariffs
small business
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The landscape of global trade has changed dramatically in recent years. As tariffs on Chinese imports rise, companies like Flexport are playing a critical role in helping businesses manage challenges in logistics and supply chains. This article explores how Flexport is navigating new tariff regulations and what this means for small businesses across the United States.

The Role of Flexport in Modern Logistics

Flexport is a leading digital freight forwarder, offering technology-driven logistics solutions for importers and exporters. The company connects businesses to an extensive network of carriers, customs agents, and vendors. By digitizing supply chains, Flexport provides transparency and efficiency—two factors that are more important than ever in today’s trade environment.

Rising China Tariffs and Their Consequences

In 2025, the U.S. government implemented a significant 145% tariff on a wide range of Chinese imports. This policy shift sent shockwaves throughout the business community, particularly among small and mid-sized companies that rely on affordable goods from overseas. According to Flexport CEO Ryan Petersen, the consequences could be severe. He warned that up to 80% of small American businesses importing from China might "just die" as a result of these new tariffs (source).

These tariffs have already led to a notable 35% drop in ocean freight bookings from China, as reported by Petersen on social media. Small businesses, lacking the financial cushion of larger enterprises, are experiencing heightened uncertainty and increased operational costs.

Real-World Business Struggles

Flexport’s data shows that the impact of tariffs is not theoretical. Many small importers have been forced to halt operations or scramble to relocate production. For example, business owners like Chelsey Brown of Curio Blvd have stopped operations entirely, while others face the daunting prospect of moving manufacturing outside China—a costly and time-consuming process.

Legal challenges are also mounting. Multiple small businesses have filed lawsuits, arguing that the government’s approach to imposing tariffs may not align with constitutional requirements. The removal of the de minimis exemption, which previously allowed low-value parcels to enter the U.S. tariff-free, further increases costs for those using direct-to-consumer shipping models.

Flexport’s Response and What Lies Ahead

Flexport continues to support its clients by developing innovative solutions, increasing supply chain transparency, and providing up-to-date guidance on shifting regulations. The company stands at the forefront of adapting to global trade disruptions, which positions it as an essential partner for businesses weathering these changes. For more on how tariffs are affecting the logistics sector, industry watchers recommend reviewing this Wall Street Journal report and Bloomberg’s coverage of Flexport’s freight sales challenges.

Conclusion: Navigating Turbulent Waters

For many small businesses, the future of importing from China now depends on adapting swiftly to new conditions. Flexport’s digital systems, expertise, and advocacy offer valuable tools for resilience. Staying informed and agile has become critical. By leveraging insights from logistics leaders and remaining proactive, small businesses can better manage the evolving landscape of international trade.

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