China’s major trade fairs (the first event since President Trump’s tariffs came into effect) served as a wake-up call for exporters who warned that the US market was completely “freezing.”
Companies at Canton Fair, China’s largest trade fair, held every other year in Guangzhou’s southern city, said they are looking for ways to move to other markets as US orders have declined dramatically since Trump slapped the country’s merchandise at a rate of 145%.
Over 30,000 exhibitors gather to showcase their products at the fair, covering over 200 soccer fields. Reuters Report. According to local media, sellers and buyers won a total of $25 billion in deals at the previous Canton Fair.
But Trump’s import taxes loomed at this year’s event, presenting a serious threat to the Chinese economy. This is the second largest thing in the world.
Kobe Huang, who attended the fair as a sales representative for Shenzhen Landun Environmental Technology, said that he manufactures water filters and smart toilets and that while sales in Europe are for the time being, the US market is important.
The customer has not cancelled the order yet, but is appealing to Chinese exporters and producers to extend the order deadline.
China sells more than $400 billion in goods to the United States each year. This is an incredible number that other trading partners don’t get close to.
The trade surplus with the US reached $295.5 billion last year. US Trade Representative.
Trump announced strict tax rates in many other countries earlier this month, but he delayed them for 90 days, during which he imposed a 10% ship-on-ship tariff in all countries except China.
This situation is disastrous for Chinese companies that rely heavily on US purchases.
“It’s a matter of life and death because 60-70% of our business are with our clients in the US,” said Candice Li, marketing manager at Conmo Electronic Co, which sells medical devices.
“We can’t export goods, we can’t raise money, and this is very serious,” Li told Reuters.
Li said her company cannot find a new market overnight. This is a problem that bothers many small and medium-sized businesses in the US as well.
Since many companies rely on specialized manufacturing of their products, it is not reasonable to switch facilities immediately.
Other countries can withstand heavy tariffs from Trump after a 90-day suspension, so a production shift from China could prove fruitless.
Meanwhile, many facilities in alternative countries, such as Vietnam, have reportedly been left with clients as they are overwhelmed by the surge in demand.
“I’m worried that if the situation remains at a dead end and neither side gives in, those who will ultimately suffer are normal people,” Li said, adding that Conmo may have to cut working hours and staff soon.
“How will their salary be paid? There’s unemployment,” Li told Reuters.
David Du, sales manager at Zealot, which manufactures the speakers, said orders from Skechers must be suspended after Trump’s duties so that 30,000 speakers will be distributed to U.S. stores.
Now he is focusing on other emerging markets like Nigeria. This is twice as much as the market that is currently more enthusiastic than the US.
Levy Spence, president of Air Esscentials, said he was at the fair to view the scented products, but “waking up every day, I feel it’s a different tariff so I didn’t plan on buying anything in particular.
“Prices are going to rise,” he told Reuters. “Even what we source in the US, many of our raw materials are sourced from around the world. It’s not just Chinese tariffs.”
According to the fair’s organizers, around 170,000 international buyers had registered at the Canton Fair by April 8th.
Approximately 10% of buyers are from the US and Europe this year, down from the last 20%.
The fair begins Tuesday and continues until May 5th.
With post wire
