145% Tariff on Chinese Products Causes Outcry in China
Chinese Entrepreneurs at Canton Fair: "Products Are Piled Up in the Warehouse"
Workers: "Daily Earnings Have Dropped from 70,000 Won to Less Than 20,000 Won"
American Companies and Workers Also Suffer from High Tariffs
U.S. President Donald Trump imposed a high tariff rate of 145% on Chinese products, causing suffering among small and medium-sized enterprises (SMEs) and SME workers exporting to the U.S., the British BBC reported on the 16th.
According to the BBC, Lionel Xu, CEO of Sorbo Technology in Zhejiang Province, China, which produced a popular mosquito repellent kit for Walmart, said, "Trump is crazy," adding, "What will we do if Trump does not change his mind? It will be a huge crisis for our factory." A company making ice cream machines participating in the Canton Fair in Guangdong Province, which mostly trades with American companies like Walmart, has currently stopped production. A company representative said, "All the products are piled up in the warehouse."
In the Guangdong area where the fair is held, factories producing shoes, bags, and clothing are densely located. It is a major production site for e-commerce companies like Shane and Temu. Factory workers in this region often work 14 hours a day. The factory visited by the BBC crew was shifting from export-oriented production to the domestic market. A worker smoking on the sidewalk in front of a nearby shoe factory said, "After COVID-19, work has decreased, and now with the trade war, the situation is very bad." He complained, "I used to earn 300 to 400 yuan (about 5,800 won to 78,000 won) a day, but now even 100 yuan (about 19,000 won) is difficult." Other workers also said they only earn enough income to maintain basic living standards.
China is at risk of losing its $400 billion (about 540 trillion won) annual export market to the U.S., and some companies are seeking new opportunities. The ice cream machine company previously mentioned said, "We will try to develop the European market, Saudi Arabia, and Russia." Some companies still place hope on the Chinese domestic market. A 40-year-old worker at a shoe company in Guangdong told the BBC, "I earn about 10,000 yuan (about 1.8 million won) a month," adding, "The U.S. is a very demanding partner."
An image of an agricultural product processing plant in the United States, unrelated to the article content.
The tariff war between the U.S. and China is also causing pain for American SMEs and workers. On the 13th (local time), U.S. CNBC cited trade industry experts saying, "With Chinese cargo order cancellations becoming routine due to the U.S.-China trade war, American companies are suffering significant damage." According to the corporate analysis firm Syintelligence, recently, U.S. importers have completely stopped orders for Chinese-made furniture. The same applies to toys, clothing, shoes, and sports goods. An expert said, "Many companies, including SMEs, have not found alternative suppliers, so sudden order cancellations will cause immediate revenue losses and product shortages," adding, "The trade war on Chinese imports should be temporarily suspended. Otherwise, the damage will become irreversible."
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