Small factories in China, around Guangzhou, are struggling as U.S. tariffs under President Trump goes to 125%. These small export-driven factories have been key to China's economic rise but now face canceled orders and shrinking profits. Many garment factories are shutting down temporarily to try to find new markets. They also are focusing on China’s already saturated and discount-heavy domestic market. Some machinery producers like Elon Li are faring better due to lack of global competition and China's low production costs. Despite these challenges, factory managers still express confidence in China's long-term strength.
https://www.nytimes.com/2025/04/09/business/economy/guangzhou-china-exports-tariffs.html
4 comments:
It is interesting to see how Chinese firms are dealing with the trade war because most of the information we get is from the perspective of US firms. It appears that both the US and China are feeling the strains of the trade war on their economies, so it will interesting to see what kind of resolution is agreed upon by the two countries.
I am interested to see if this will lead to a concession by China first or if they will continue to uphold their tariffs in retaliation to the U.S.'s imposition of tariffs on them.
Small factories in China are feeling the squeeze from the tariffs, especially in industries like garments where margins are already thin. Some are holding on, but it’s clear the trade war is pushing a lot of them to rethink everything.
It will be interesting to see how these tariffs evolve and which parties ultimately bear the brunt of this trade war, be it the factories in China, the U.S. importers, or consumers on both sides.
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