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Donald Trump’s tariffs unravel US supply chains at China’s export showcase

Keno Kelly, US Business Executive Director to the 137th Import and Export Exhibition in Guangzhou this week with one goal: find Chinese suppliers who can make the goods you need outside the country.

“Now, it is necessary,” said the head of the product development from New York. “No exceptions.”

Kelly’s passion for diversifying her supply chains is one of the ways he attends in the largest and oldest commercial exhibition in China – known as the Canton Gallery – with a new fact of global trade after US President Donald Trump raised the fees on most Chinese goods to 145 percent this month.

Founded in 1957 during the leadership of Mao Zaidung to help the Communist country overcome an American trade ban, it became a Canton exhibition twice annually twice. China’The prominent export is offered as a decisive link between the base of sprawling manufacturing in the country and its enthusiastic agents all over the world.

But Trump’s sharp graphics – which China met with it 125 per cent of customs tariffs On its own-it has much exceeded what most of the exporters considered the scenario of the worst cases before taking office, and threatened to provide a separation between the largest economists in the world.

In a notice issued by the exhibitors whom the Financial Times seen, the organizers described the World Trade Environment as “dark and complex” and warned that they would perform searches at the end of each of the three stages of the exhibition to ensure the exhibitors are not built early.

The attendees look at the displayed front loading washing machines
The warehouses in China have been filled with commodities since Donald Trump revealed his new definitions on China, which raised prices for many buyers above what they were ready to pay © qilai Shen/Bloomberg

In the halls of the Canton exhibition in Guangzhou, the amazing American buyers and Chinese producers rushed to find new markets for their utensils or alternative trade routes to avoid DefinitionsWhile the warehouses filled with piles of unwanted stocks are newly not tolerated.

“Our prices for large supermarkets are already very low. We have no way to accept such a high tariff,” said Rin Zhao, the XSTRAP product manager, who produces the car roof belts for us. Customers including Wal -Mart In a factory with more than 100 employees in the East Chinese province of Jiangsu.

REN and other suppliers added that many products were designed for specific American customers, which means that finding customers in different markets may include highly declining organizational obstacles or removal of brands.

With a few clear solutions, Ren expressed his hope that the two sides would meet quickly to connect a deal. But neither of them was committed to a timetable for the conversations.

Many exporters said in a 1.6 million square meter exhibition that the new fees made the sale of the US market not possible.

“It is definitely difficult,” said Shin Singian, sales manager at Autoline, a manufacturer of entertainment devices such as coffee makers, which make a third of its sales in the United States.

“All our customers in the United States have stopped all their orders … the tariff is very high.”

“If they don’t talk, we will have no choice but to stop making the US market,” Shin added. “We can only try to find more customers in Europe or in countries along the belt and the road [President Xi Jinping’s signature international infrastructure initiative]”

Crowds of people at the Canton 137 in Guangzhou, South Chinese province of Guangdong on Tuesday
The import and export exhibition was created in China in Guangzhou by Mao Zaidong in 1957 to help China overcome an American trade ban. Today, manufacturers are connected with customers all over the world © from Han Joan/AP

Another option is to transfer production from China.

Many Chinese exporters began expanding their operations abroad after Trump imposed a customs tariff on the country in 2018 during his first term in his position. The compartments at the Canton exhibition possessed the flags of Vietnam, Thailand and other Southeast Asian countries in an attempt to attract American buyers cautious about the costs of the “Made in China” brand.

Vera Lee, sales specialist in the Quanzhou Viition, a manufacturer for lighting and gifts with factories in Cambodia and the Chinese coastal coastal province, said Trump’s duties will accelerate the transformation of production balance into Southeast Asia.

The company’s factory in Cambodia has already includes ordinary employees with about 1,000 workers, compared to 800 in its location in Fujian, and was planning to expand with two new factories. She said that the Fujian factory will gradually convert its focus from manufacturing, design and research.

But Trump’s threat to “mutual” definitions on almost all global trading partners in America – who postponed them for 90 days – meant that exporters who had plants abroad did not breathe a sigh of relief.

The “mutual” fees were based on commercial balances, which means that countries that have surpluses in the large United States such as low -cost manufacturers Vietnam, Cambodia and Bangladesh may face fees of 49 percent.

Nancy Yi, sales manager at Flextech Co, a solar panel product and energy storage units in the United States market at two factories in Hobby and Vietnam Province in the future, in the future, but in the future we do not know, this policy should wait. “At the present time, there is no very clear solution.”

However, for American companies that have products for the source, finding Chinese companies that run factories in Southeast Asia can be the only option, said John Chen, CEO of Sourming.

“Our goal is to get the product outside China, manufacturing and delivery [it]He said: “This is a priority.”

“[If] The United States also introduces Vietnam, Cambodia, Thailand, Indonesia, [then] “But to pay them, Chen said,” but to pay them, adding that Trump’s goal is to push companies to re -manufacture to the United States was “impossible.”

“The supply chain is not present.”

Additional reports from Cheng Ling and Gloria Lee in Hong Kong

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2025-04-18 02:12:00

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