Tariff Turmoil: Trump's Trade War stings Chinese Factories

In a warehouse in Zhejiang province, Lionel Xu stands among stacks of unsold mosquito repellent kits once destined for Walmart shelves in the U.S. “Trump is a crazy man,” Xu says, frustration clear. “This is so hard for us.” His company, Sorbo Technology, exports half its products to the U.S.—now blocked by a 145% tariff imposed by President Donald Trump.

The trade war has frozen Chinese goods meant for American households, leaving thousands of factories like Xu’s in limbo. “We are worried. What if Trump doesn't change his mind? That will be a dangerous thing for our factory,” Xu adds.

A recent global market instability led Trump to postpone most of his tariff actions but Chinese imports continue to sustain steep levies. Beijing took a tough stance against Washington by enforcing a 125% duty on U.S. imports as a means of retaliation which deepened the economic dispute between both countries. A Chinese trade fair hosting over 30,000 businesses displaying electric toothbrushes together with waffle makers creates an atmosphere of doubt for U.S. buyers who face inflated costs that they cannot raise to their customers. “The cost of a vacuum cleaner or food mixer with tariffs is just too high,” one exhibitor noted.

Despite China’s strong domestic market, confidence remains shaky. “If they don't want us to export – then let them wait,” says buyer Hy Vian. “We already have a domestic market… we will give the best products to the Chinese first.”

A weak economic performance combined with decreasing property values prevents consumers from making purchases. Despite official calls for increased spending people from the middle-class remain cautious. China’s economic growth depends on exports to the extent of half because the ongoing trade dispute threatens worldwide supply networks while raising consumer costs.