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EU Parliament Reaches Consensus on EU-U.S. Trade Deal: The EU Parliament has come to a consensus on the trade deal that it reached with the U.S. last summer, and may vote on moving forward with the deal as soon as February 24. While the U.S. implemented a minimum total tariff of 15% on EU goods last August, other provisions of the trade agreement have remained under EU legislative review. EU lawmakers have proposed a number of modifications and additions to the deal, including the following: |
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The EU will re-assess the deal six months after it takes effect, should the U.S. fail to reduce its 50% tariff on EU steel derivative products to a baseline of 15% by that date. |
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The EU will introduce a sunset clause that will void the trade agreement in March of 2028, at which point the EU and the U.S. must extend or re-negotiate the deal. |
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The EU will also enforce a suspension clause, which will suspend the deal if the U.S. undermines or otherwise acts against European territorial integrity. EU lawmakers introduced this proposal shortly after President Trump announced and later walked back plans to impose a 10% tariff on eight European trading partners due to their opposition to U.S. control of Greenland. |
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U.S. Senators Introduce Legislation to End First Sale: On February 11, U.S. Senators Sheldon Whitehouse (D-RI) and Bill Cassidy (R-LA) introduced the Last Sale Valuation Act. Under this proposed law, the valuation of an imported good must reflect the value of its last transaction before exportation to the United States. |
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If signed into law, the legislation would effectively eliminate the First Sale rule, which enables importers to determine an imported good’s transaction value based on the first transaction in a multi-tiered transaction (e.g., the price an intermediary pays a foreign factory). Because the price of the product’s first sale is often lower than the price paid by the importer later on in the supply chain, the First Sale rule enables a lower duty amount upon entry into the U.S. |
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According to Senator Whitehouse, the legislation aims to promote domestic manufacturing and “close loopholes that give multinational corporations unfair advantages over small businesses.” If implemented, the Last Sale Valuation Act could lead to higher duties for importers, new compliance requirements, sourcing shifts, and landed cost implications. |
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U.S. Eliminates Additional 25% Tariff on India: Effective February 7 at 12:01 a.m. ET, Indian goods imported into the U.S. are no longer subject to the additional 25% tariff imposed last August in response to India’s purchases of Russian oil. |
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With the oil-related tariff now eliminated, the U.S.’s total effective tariff rate on India is currently 25%. |
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Per the trade deal announced last week, the U.S. has agreed to reduce its reciprocal tariff rate on Indian goods from 25% to 18%. This tariff reduction, whose timeline for implementation remains unclear, would bring the U.S.’s total effective tariff rate on India down to 18%. |
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For unliquidated entries entered or withdrawn for consumption on or after February 7, and for which duties have been deposited, importers can file a post summary correction (PSC) to request a refund. For liquidated entries, importers can request a refund by filing a protest within 180 days of liquidation. |
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U.S.-India Interim Trade Deal Framework: On February 6, the U.S. and India published an interim trade agreement framework that reinforces many of the trade deal terms announced early last week, including the upcoming reciprocal duty reduction on Indian goods. |
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The framework also lays out certain other provisions: a preferential tariff rate quota for Indian auto parts subject to Section 232 duties; preferential treatment for Indian pharmaceuticals, if and when those Section 232 duties take effect; mutually beneficial rules of origin; and more. |
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The U.S. and India are expected to finalize this framework by the end of March, but the exact timeline remains unclear. |
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Potential Tariffs on Nations “Doing Business” with Iran: On February 6, President Trump issued an executive order laying the groundwork for an additional tariff on nations that “directly or indirectly purchase, import, or otherwise acquire any goods or services from Iran.” The order does not specify a specific duty rate, but cites President Trump’s previously announced 25% as an example. |
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The order defines “goods or services from Iran” as those that “United States persons are prohibited from trading with respect to Iran.” |
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Per the order, the Secretary of Commerce and other Cabinet members will first identify all nations importing goods from Iran. Afterwards, if they determine that the U.S. should proceed with the duty, they will advise President Trump on a possible duty rate. |
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Iran’s largest trading partner is China. In 2024, Iran imported about $17.8 billion in Chinese goods, while Iranian exports to China totaled $14.6 billion. China is also the biggest purchaser of Iranian oil, importing more than 80% of Iran’s shipped oil in 2025. Iran’s other major trading partners include Turkey, Pakistan, and India. |
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U.S. and Bangladesh Reach Trade Deal: The agreement, announced on February 9, will see the U.S. reduce its reciprocal tariff rate on Bangladesh from 20% to 19%. The timeline for implementation is currently unclear. |
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Per the agreement, the U.S. will also exempt a yet-to-be-determined quota of Bangladeshi textile and apparel products from reciprocal tariffs. Bangladesh was the fourth-largest supplier of textiles to the U.S. in 2024, accounting for about 6.5% of total textile imports. |
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Bangladesh will reduce or eliminate non-tariff barriers on a wide range of U.S. exports, including vehicles, medical devices and pharmaceuticals, agricultural products, and more. |
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Bangladesh will commit to purchasing about $3.5 billion in certain U.S. agricultural goods, and about $15 billion in U.S. energy products over 15 years. |
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Other Recent Developments: |
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On February 6, U.S. Customs and Border Protection (CBP) began issuing all refunds electronically. Find CBP’s recently published FAQs on the transition here, and check out our blog for more guidance. |
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On February 9, Mexican President Claudia Sheinbaum stated that her nation has halted all oil shipments to Cuba, just over a week after President Trump issued an executive order laying the groundwork for potential tariffs on nations that directly or indirectly supply oil to Cuba. Mexico was the biggest supplier of oil to Cuba in 2025, accounting for about 44% of Cuba’s total crude imports. Faced with an increasingly severe energy crisis, Cuba has recorded its first month without any oil imports in a decade. |
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The EU has extended the suspension of its countermeasures against the U.S., postponing retaliatory tariffs on €93 billion (about $109 billion)’s worth of U.S. goods for another six months. The latest suspension of these countermeasures will remain in effect through August 6, 2026. |
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Find the latest tariff and trade developments on our live blog. |
We recently launched the Flexport Tariff Refund Calculator to help businesses scenario-plan ahead of the U.S. Supreme Court ruling on IEEPA tariffs. Instantly calculate total duties that are potentially eligible for refunds, break them down by duty category, and quickly understand your potential return if the Supreme Court orders refunds.
TRANS-PACIFIC EASTBOUND (TPEB)
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Demand is tapering off as factories across Asia begin their Lunar New Year shutdowns. |
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Capacity has been reduced to 57-61% for Weeks 9 and 10, given blank sailing programs taking place through Lunar New Year. Carriers are currently pooling rolled cargo to fill remaining space. |
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Capacity is expected to recover quickly, potentially bouncing back to over 80% by the second week of March. This could result in oversupply in March if demand does not ramp at the same pace. |
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Overall, there is no change in the market as we near Lunar New Year. |
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Carriers have pushed Peak Season Surcharge (PSS) decisions to March. |
FAR EAST WESTBOUND (FEWB)
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As the pre-holiday demand surge concludes, the market is undergoing significant supply-side adjustments. |
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Beginning the third week of February, carriers will implement aggressive blank sailing programs. This is expected to remove approximately 40% of total weekly capacity in an attempt to manage structural oversupply and align with the seasonal demand slack. |
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Operations at Asian Hubs: |
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Transshipment pressure is rising in Singapore due to cargo rolling and vessel bunching. Dwell times now exceed 7 days, while yard density has reached 95%. |
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Operations in Northern Europe: Operational constraints at destination hubs are further tightening effective capacity, as winter weather and vessel bunching continue to hinder terminal productivity. |
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At Hamburg and Rotterdam, yard density exceeds 85%. Dwell times are also significantly beyond the norm, at 7 to 10 days. |
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Overall, rates are showing signs of softening as the pre-holiday demand peak subsides. This downward trajectory is underscored by recent movements in the Shanghai Containerized Freight Index (SCFI). |
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Rates for the second half of February are generally maintaining stable levels, with intense blank sailing programs and ongoing destination port congestion absorbing excess capacity. |
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Carriers have already announced a substantial Freight All Kinds (FAK) rate increase for March to establish a stronger rate baseline for long-term deal negotiations in Q2. |
TRANS-ATLANTIC WESTBOUND (TAWB)
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North Europe and West Mediterranean: Demand is firming moderately as we head into mid-February. This is supported by record tonnage levels, despite persistent blank sailings capping effective volumes. |
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East Mediterranean: Flows remain relatively stronger. |
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Critical container and chassis shortages persist, particularly in Austria, Slovakia, Hungary, Southern and Eastern Germany, and Portugal. Expect inland delays of 2 to 4 days. |
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Rates remain stable across North Europe, the East Mediterranean, and the West Mediterranean. Spot levels to the U.S. East Coast are generally within the low-to-mid $1,500/FEU range. |
INDIAN SUBCONTINENT TO NORTH AMERICA
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Given the India-U.S. trade deal announced last week, the market is anticipating an uptick in March as production increases for Indian exports. Effective February 7, the U.S. has removed the 25% tariff on Indian goods imposed last August over India’s purchases of Russian oil. Meanwhile, the U.S. has yet to officially reduce the reciprocal duty rate on India. |
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To the U.S. East Coast: CMA CGM (INDAMEX) and Maersk (MECL) continue to proceed with Suez routings through the Red Sea. Capacity is available through February on base-port-to-base-port lanes. |
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To the U.S. West Coast: Capacity is available on PS3, the sole direct service from India to the U.S. West Coast, and on broader services from the TPEB into the Pacific Southwest (PSW). |
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To the U.S. East Coast: Rates will hold through the end of February. If demand increases as anticipated in response to the recent tariff mitigation announcement, however, we are likely to see rates increase into March. |
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To the U.S. West Coast: February rate levels remain low, but may bounce back if demand rises. |
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The Trans-Pacific market to the U.S. West Coast remains flat in the final week leading up to Lunar New Year, with no significant last-minute volume surge. Although carriers are attempting to push rates upward, soft demand is limiting substantial increases. |
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Meanwhile, demand to U.S. Midwest and East Coast destinations has notably strengthened this week. Capacity to certain inland points is extremely tight through mid-February; alternative routings may be necessary to maintain service levels. |
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South China has entered the final week leading up to the holiday period, with many factories beginning to shut down. This has resulted in typical last-minute cargo movements, though overall demand remains stable. |
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A wave of flight cancellations is expected to begin next week, when the holiday officially starts. This may temporarily impact available capacity. |
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Trans-Pacific demand and pricing remain relatively stable, although overall month-end volumes were softer than anticipated. |
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Capacity to Europe is tightening ahead of Lunar New Year. |
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Market demand remains flat, with no notable surges across Trans-Pacific or Europe-bound lanes. |
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Rates are expected to remain stable this week, with potential for slight firming toward the end of the week. |
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Market conditions are stable. Some gradual rate increases are expected in the coming weeks as regional production ramps up ahead of Lunar New Year. |
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Operations will continue as normal during the holiday period. |
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Cargo volumes are moderately increasing. Rates and capacity on U.S.-bound lanes remain stable, while Europe-bound capacity is rapidly tightening due to pre-holiday demand. |
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The market is seeing a mild uptick in demand. |
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Trans-Pacific capacity is tightening across most U.S. destinations, while Europe-bound capacity remains stable. Shippers are encouraged to book in advance to secure space. |
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Currency appreciation is impacting export pricing dynamics, contributing to firmer USD-denominated rates in certain cases. |
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Market conditions remain generally stable, with no major pre-holiday surge. However, regional transit hubs face slight congestion due to increased intra-Asia flows. Rates have edged up moderately. |
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Shippers are encouraged to book 5 to 7 days in advance to confirm space. |
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Following a recent reduction in U.S. import tariffs on Indian goods, market sentiment is improving. Demand is picking up, particularly on Trans-Pacific lanes, leading to slight upward rate movement. |
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As Lunar New Year approaches, capacity is expected to tighten. Shippers are advised to book early. |
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Capacity remains available, but inquiries are rising as pre-Lunar-New-Year demand develops. |
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Shippers are encouraged to book in advance, particularly for urgent shipments. |
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Demand remains stable. Pricing faces mild upward pressure, particularly on Europe-bound lanes. |
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Market conditions mirror those in Bangladesh, with stable rates and available capacity across major trade lanes. |
(Source: Flexport)
Please reach out to your account representative for details on any impacts on your shipments.
Transit time increased from China to the U.S. East Coast and China to North Europe, and decreased from China to the U.S. West Coast.
Week to February 9, 2026
Transit time decreased from 34.5 to 34.1 days from China to the U.S. West Coast; increased from 56.4 to 57.5 days from China to the U.S. East Coast; and increased slightly from 55.4 to 55.6 days from China to North Europe.
Stay in the loop—read past newsletters here. For more information, connect with one of our logistics experts here.
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