Chinese exporters and manufacturers are experiencing significant disruptions as a result of the abrupt increase in U.S. tariffs on Chinese imports. Since the new 125% tariff rate makes their products much more expensive in the U.S. market, many companies are reporting order cancellations, shipment delays, and declining profits.
After spending tens of thousands on materials, a TikTok user who sells copper parts explained how they lost a sizable order.
Another bulk supplier with orders totaling more than $50 million this year, warned that their extremely thin margins might be destroyed by the tariff increase.
Similar worries were expressed by owners of clothing factories, who cautioned that dishonest tariffs are driving away American customers and escalating domestic competition.
President Trump’s announcement of new tariffs on April 2 triggered China’s matching 34% retaliatory tariff on April 4. Trump has also threatened an additional 50% hike and finally even announced a 125% tariffs.
This trade escalation is affecting not just exporters but domestic manufacturers too, as raw material suppliers struggle and shift toward an already saturated local market.
Several factories are shutting down or selling equipment due to weak demand. Some manufacturers tried moving production to Southeast Asia, but many of those countries are now also facing high tariffs. A TikTok user from Guangzhou said companies have stopped accepting U.S. orders and are waiting to see what happens next.
Experts warn that China, heavily dependent on U.S. trade, is at a disadvantage. As the U.S. engages in negotiations with other countries, China’s rigid countermeasures and shrinking options may lead to further isolation, worsening the economic impact on its businesses and workers. Probably this is what Trump might be wishing for, crushing Chinese dominance on the world.
