South China Morning Post (SCMP) On Tuesday, President Donald Trump’s tariffs pushed up prices and stopped ordering for computer products, which saw a sense of darkness settling down in China’s vast electronic market in Shenzhen.
SCMP I spoke The distributor is in Huaqiangbei, a district of the high-tech hub city of Deep Shenzhen, specializing in chip trade. According to these distributors, prices for popular chips from major US manufacturers surged by up to 40% after Trump’s tariffs were announced, killing demand for end-user products.
There was still retail traffic on the streets of Huaqiangbei, but insiders expected sales of commercial electronics to plummet in the next few days.
“Orders have plummeted since last week. Due to prices rising, we have had very few orders recently,” one distributor said.
“There’s no point in working at the moment. – We’re not making any money and staying open just adds our costs,” the distributor added.
Washington Post Found The Chinese e-commerce industry is in “despair” as Trump’s huge 145% tariff was sure to kill prosperous businesses with American customers.
“My biggest worry is that our companies won’t survive for the next few months and will go bankrupt,” said Wang Xin, head of the Deep Shenzhen e-commerce Association, whose members run a lot of business online with Americans.
China’s “fast fashion” and microshipment retailers are illustrated by Shayne and Tem, and could absolutely be devastated by tariffs. Trump said he’s going to close de minimis How to make these businesses thrive – and facilitated the delivery of deadly fentanyl chemicals to the US. – By waived packages under $800 from duties and inspections.
120% tax will collide with these small packages from May 2nd. This could destroy the business model that Shane and Temu sold very small orders over the internet and thriving by shipping products directly to customers without the presence of US delivery. Many of Amazon.com’s top sellers are also Chinese companies selling individual items through Amazon’s vast transportation network.
Washington Post These Chinese microretailers have reported being cheerful about their opportunity to survive Trump’s 10-20% early tariffs using aggressive online marketing, but their smiles create an insurmountable barrier to the US market as 120% tariffs and more tariffs collapse.
Some market analysts believe that Chinese producers are clever and adaptable enough to survive high tariffs. Some believe that even three-digit tariffs do not completely eliminate the ability to completely eliminate American and European competitors, because the cost benefits are so great.
The Chinese government could also intervene via subsidies to help manufacturers survive the trade war, unless it’s not too long and a new digital market like Tiktok’s new online shop continues. – Combined with a huge network of social media influencers cultivated by Chinese merchants – They may strengthen their business enough to survive the trade war.
Some of the e-commerce merchants interviewed SCMP and Washington Post We also talked about finding alternative markets to sell our products, but what was sprinkled through these deep Shenzhen interviews was an unpleasant entrance where no one would buy like American consumers, and many of the Chinese e-commerce companies were coordinated to meet the quirky demands of American impulsive buyers.
