Some say traders at Yiwu’s China’s export manufacturing hub shrugged on Sunday from US President Donald Trump’s tariffs and moves against China, preparing to ease the blow.
Yiwu city in Zhijiang province, eastern China, is the world’s largest wholesale hub, including the US, and the world’s largest wholesale hub, from Christmas trees to costume jewelry.
“We predicted he would take on power,” Chen Hao-dong, chairman of Baige Group, a business selling clothes to water bottles, told Reuters from an office in the city.
“Okay, how do you want to adjust after he takes over power? In fact, it was pre-prepared,” he said.
They monitored information on social media sites overseas and in April they would set up a new factory to produce liquid laundry detergents in Tennessee, USA, he added.
Trump’s campaign promised a 60% tariff on Chinese imports before being elected. However, he revised it to 10% after taking office and came into effect on Tuesday. He also plans to cancel tax-free treatment for low-cost packages from China.
“The shock is actually not that big for us this time,” Chen said. Chen refused to provide detailed numbers on the sale.
Beisi exports to other companies overseas, but analysts have exploited some of its products through online platforms such as Temu and Shein, which are expected to be hit hard by the abolition of Trump’s “de Minimis” rule. It sells directly to US consumers. – Trade breakthroughs that allow low-value imports to enter tax-free.
Similar sentiment was shared by traders and buyers in the vast spongy market in the city, with many just returning to work at the end of China’s biggest holiday, eight days of the month’s New Year’s break. Ta.
“Even if you increase the tariff to 50% (even if) it will not affect us,” says Zeng Hao, owner of Jinqi Wanju, who sells toys such as brightly colored dinosaur figurines. states.
He said that it was because the product was very profitable and his company could absorb some of the tariff burden. He added that companies under the supply chain also have reasons to raise their prices.
Trump’s move rekinds fears that a full-scale trade war will escalate between the two largest economies in the world, with China preparing to impose a unique anti-opposition of up to 15% on some US goods. It’s there.
Abbyzin, who buys products at Yiwu on behalf of other customers in markets such as the US, Australia and the Middle East, said that vendors in the city lacked orders.
“You can respond slightly by reducing profit margins or adjusting costs. In the end, the additional costs will be passed on to your country’s final consumers. In other words, ultimately your economy We will bear the outcome of the policy,” she said.
“For the United States, whether they can find a suitable country to replace us (as trading partners) is a question they need to consider themselves.”
Published – February 10, 2025 04:21 PM IST
