Writing on the wall as Chinese businesses fret over US trade war

At a bustling Shanghai trade fair,
exporters of goods ranging from plush toys to chainmail bikinis expressed
growing unease at the escalating US-China trade war as new US tariffs took
hold on Tuesday.

President Donald Trump on Monday doubled previously imposed tariffs to 20
percent, which themselves pile atop existing levies on various Chinese goods.
The fair on Tuesday showcased the huge spectrum of such exports — sellers
of everything from bath mats to cosmetics told AFP their businesses would be
affected in some way.

The writing was on the wall at the Weiteng Gifts booth, where fridge
magnets, keychains and medallions reading “Red Rock Rave Las Vegas”, “Colorado
Crossroads” and “West Texas Classic” were proof of its reliance on the US
market.

“I’m a little worried, but there’s nothing I can do. We can only absorb it
internally and hedge any risks,” representative Andy Dai told AFP.

He said about 70 percent of the company’s sales went to the United States.
Weiteng’s sales in the first two months of 2025 were down 15 percent
compared with last year, he added.

“The impact (of tariffs) is actually quite great, especially for small- and
medium-sized enterprises,” said Esther Ma, who works for a logistics company
that counts e-commerce giants Shein, Temu and Amazon among its clients.
“In my industry, everyone is very worried about this kind of trade war…
If it is a blow to our customers, it will also have a great impact on us.”

Christmas trees and cat litter

Among stalls selling products from “Protect Your Peace” candles to
Christmas trees and cat litter, traders smiled ruefully when asked about
China-US relations.

Weiteng’s Dai said the company had started to develop its business
domestically, boosting its presence at local trade fairs.

“At the same time, of course, we can’t give up our traditional market. The
European and American markets are still our most important markets, so we are
now straddling all of them to spread the risk,” Dai said.

Diversifying customer bases was a recurring theme among those who said they
would be affected.

One company at the trade fair specialised in the mesh and sequined party
harnesses seen at festivals such as Coachella and Burning Man.

A saleswoman said they were focussing on developing their European market
to make up for the hit they had already taken in the United States.

Logistics specialist Ma said some of her clients had told her they were
switching to focus within Asia or to countries that are part of China’s Belt
and Road infrastructure and trade initiative.

Others said they hadn’t seen any effects from the tariffs yet but feared
they would not be able to avoid it in the future.

However, another logistics professional said he thought the cost would be
passed on to US consumers rather than Chinese companies.

“We export to a lot of countries and the United States is just one of
them,” said Jin Ziqin, whose company sells cleaning products.

“This new trade war? We’ve been in a trade war all along. I believe that
China has various ways to deal with it,” she said.

Beijing has already retaliated against the latest US move, saying it would
impose 10 and 15 percent levies on a range of US agricultural imports, from
chicken to soybeans.

“If we keep going back and forth, I think things will keep escalating,”
Weiteng Gifts’ Dai said.

“But as an ordinary business, we certainly hope that through dialogue and
negotiation, the two governments can reduce trade disputes.”(AFP)