breaking
Freightwatch Reporter
Freightwatch.news
Tuesday, May 12, 2026
Chinese exporters have largely adapted to the U.S. tariff environment after a year of adjustments, diversifying supply chains and expanding into new markets including the Middle East. However, the Iran war now poses a greater threat to their operations than trade policies, disrupting critical shipping lanes and dampening global demand for Chinese goods.
With President Trump and Xi Jinping set to meet this week, exporters are prioritizing Middle East stability over tariff negotiations. Industry observers report businesses are expressing minimal concern about trade policy, instead focusing on the conflict's duration and its impact on overseas orders.
Some companies have begun drafting contingency plans to scale back operations in the second half of 2026 if hostilities persist. Beijing and Washington are expected to reaffirm commitment to reopening the Strait of Hormuz. However, analysts warn maritime disruptions and protracted negotiations will likely continue.