US businesses who trade with China are facing a double whammy of continuing tariffs and a hike in shipping costs, with several household names set to sue the White House for losses caused by the ongoing trade war.

On Tuesday, data from China’s General Administration of Customs showed a surge in imports and exports in September, with 13.2% and 9.9% growth year on year, respectively. The strong uptick shows how Beijing is navigating the politics of a post-pandemic recovery—exporting vital goods to worse-hit nations while aiming to meet its trade deal commitments to the U.S.

Minnesota company’s plastic-and-wire closures—a fixture on bread bags—are at the leading edge of Washington’s tariff tiff with Beijing

While Trump’s acolytes would insist that the trade war is good, necessary and will bear fruit in the long term, the hard evidence of the past two years is less persuasive

On September 15, the World Trade Organization (WTO) found that some U.S. Section 301 tariffs on Chinese goods are illegal. Washington took the news badly. U.S. trade representative Robert Lighthizer declared that the verdict proves the WTO is “completely inadequate.” Sen. Josh Hawley (R-Mo.) said the verdict was “more evidence that the WTO is outdated, sclerotic and generally bad for America.”

China and the United States have been locked in a bitter trade war since president Donald Trump took office in 2016.

However, despite the disruption this year, the effects of the tariffs remain clear and the long-term shifts that were already occurring before the pandemic are unlikely to be reversed. One of the most obvious impacts is the shift in the Asian manufacturing landscape. Manufacturing of many goods now facing tariffs when imported by the US from China, has moved out of China for manufacturing in neighbouring countries.

The US and China are moving ahead with the phase one trade deal, with officials from both countries speaking on the phone to review its progress. The development has eased concerns that deteriorating bilateral relations would impact the agreement and potentially ignite another trade war.

Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods, giving a boost to financial markets on Tuesday.

Research by the Stenn Group finds that a UK business could take a $3.93m hit due to the escalating tension between the two countries