Surge in Demand for 'Trump Goods'
Increase in Imports of China-Made Goods
As concerns grow that President-elect Donald Trump may impose a 'tariff bomb' on China after entering the White House, it is reported that Chinese small business owners are instead enjoying an unexpected 'Trump effect.' This is because most of the goods used during Trump's election campaign were imported from China.
According to the Hong Kong South China Morning Post (SCMP) on the 12th (local time), more than 1,000 'Trump goods' including clothing, hats, dolls, flags, and socks are currently being sold through the U.S. e-commerce platform 'Amazon.' These clothing items are characterized by the election slogan 'Make America Great Again (MAGA)' printed on them.
The demand for such 'Trump goods' reportedly surged before and after the election campaign. The product price is usually $19.99 (about 28,000 KRW), and more than 10,000 units were sold by last month.
Regarding the booming sales of Trump goods, SCMP explained, "Manufacturers in regions including Yiwu City in eastern China found a reason to celebrate Trump's victory." Yiwu in Zhejiang Province, China, is known as the site of the world's largest wholesale market, where most simple clothing and toys like Trump goods are produced.
Online seller Ricky Luo told the media, "On the day the U.S. election results were announced, we received over 3,000 orders overnight," adding, "Hats sourced from Yiwu at $0.56 (about 780 KRW) each can be sold online for $9 (about 12,000 KRW)." In other words, simply selling inexpensive Chinese products at high prices in the U.S. can yield enormous profits.
On the 5th of last month (local time), when the U.S. presidential election was held, Isaac and Karen, supporters of former President Donald Trump, posed in front of a polling station set up at the Fairfax County Government Center in Virginia, USA. Photo by Yonhap News.
Ricky Luo added, "We also made 3,000 hats for Kamala Harris, but they did not sell well, so we had to take a loss."
Some Trump-related products are reportedly already 'almost sold out' on China's e-commerce platform 'Temu.'
However, SCMP pointed out that "the joy of these Chinese companies will be short-lived." This is because President-elect Trump has announced that he will impose a 60% tariff on Chinese products imported into the U.S. after taking office.
In this regard, Nick Marro of the think tank 'Economist Intelligence Unit (EIU)' analyzed, "The likelihood of the next Trump administration's tariff threat being realized depends on the results of the House elections," adding, "If the Republican Party becomes the majority, it will be easier for the Trump administration to implement trade policies."
However, even if the Republican Party becomes the minority, it is highly likely that the protectionist stance of the second Trump administration will not change. Marro pointed out, "Many Democrats actually do not strongly oppose tariffs."
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