China’s Export Hub Yiwu Unfazed by Trump’s New Tariffs, Citing Advance Preparations

Traders in Yiwu, China’s leading export manufacturing hub, showed little concern over US President Donald Trump’s latest tariffs, with some stating they had taken steps to mitigate the impact.

Yiwu, located in eastern China’s Zhejiang province, is the world’s largest wholesale hub for small manufactured goods, exporting everything from Christmas decorations to costume jewellery worldwide, including to the US.

“We predicted that he would assume power,” said Cheng Haodong, chairman of Beisi Group, a company selling products ranging from clothing to water bottles. “After he assumed power, we asked ourselves how we wanted to adjust. Actually, preparations were made in advance.”

Cheng noted that the company had been monitoring overseas social media, leading them to establish a new factory for liquid laundry detergent in Tennessee, US, in April.

During his campaign, Trump had pledged 60% tariffs on Chinese imports, though after taking office, he revised the figure to 10%, a rate that took effect on Tuesday. He also plans to revoke duty-free privileges for low-cost packages from China.

“This time, the shock won’t be too big for us,” Cheng said, declining to disclose specific sales figures.

Beisi exports to businesses abroad and sells directly to US consumers via online platforms such as Temu and Shein. Analysts predict these low-cost shopping sites will be significantly affected by Trump’s repeal of the ‘de minimis’ rule, which previously allowed low-value imports to enter the US duty-free.

Other traders in Yiwu’s vast marketplace echoed similar sentiments, many returning to work after the eight-day Lunar New Year holiday.

“Even if you increase the tariff to 50%, it won’t affect us,” said Zeng Hao, owner of Jinqi Wanju, a toy company selling products like colourful dinosaur figurines. He explained that the firm’s profitability allowed them to absorb some of the additional costs while supply chain companies also had room to adjust pricing.

Trump’s actions have reignited fears of an escalating trade war between the world’s two largest economies, with China preparing to impose counter-tariffs of up to 15% on certain US goods.

Abby Jin, who procures products from Yiwu for clients in the US, Australia, and the Middle East, said vendors in the city were still receiving steady orders.

“We can respond by slightly reducing our profit margins or adjusting costs. Ultimately, the added expenses will be passed on to end consumers in their country, meaning they will bear the consequences of their own economic policies,” she said.

Faridah Abdulkadiri

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