How Have Trump’s Tariffs Impacted Chinese Manufacturers?

On April 2, local time, Donald Trump signed two executive orders on the so-called “reciprocal” tariffs, imposing a 10 percent minimum baseline tariff and higher rates on certain trading partners. In the weeks that followed, the world witnessed a dramatic standoff: while everybody seemed involved, no one could predict the outcome.

Trump’s tariff policies injected significant uncertainty into global trade, unsettling the foundation of globalization. On one hand, developing countries found their survival and development prospects squeezed; on the other hand, criticism and frustration mounted within the United States itself.

California, long regarded as America’s manufacturing powerhouse, filed a lawsuit against Donald Trump’s administration over tariffs imposed on most of U.S. trading partners. “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy—driving up prices and threatening jobs,” Governor Gavin Newsom stated.

Of all the affected countries, China emerged as the primary target. Tariffs on some Chinese exports soared as high as 245%. Yet, despite the complex and challenging external environment, a Chinese customs official reassured the public at a press conference, “the sky won’t fall” for China’s export sector.

According to Lyu Daliang, an official with the China General Administration of Customs, China, in recent years, has steadily diversified its foreign trade markets and deepened industrial and supply chain cooperation with partners. These efforts have not only supported partner countries’ development but also enhanced China’s own resilience against external shocks.

China’s vast domestic market has also acted as a crucial buffer. Since Covid-19, the Chinese government has consistently emphasized boosting domestic consumption, expanding internal demand and strengthening domestic economic circulation. The strategy cushions the economy against global volatility.

After our VIP Imaging Expo held in Johannesburg last week, Stuart Lacey, C-RT’s regional partner in South Africa, shared his perspective on the tariffs with Cecile Zheng, Deputy General Manager of C-RT:

“We can not understand Trump’s tariff policy at all. China’s market has huge potential, and its supply chain advantages are so clear. How could these tariffs possibly benefit America’s economy? If the U.S. sets limitations, we will simply turn to do more business with China. It’s just as simple as that.”

During the expo, Cecile also spoke with several Chinese suppliers exhibiting at the event. Their feedback fell broadly into four categories:

1. Indirectly Affected: Some manufacturers do not export directly to America, but their clients do, making their orders vulnerable to the U.S. market fluctuations.
2. Impact is Manageable: Manufacturers with established brands and strong technical capabilities are better positioned to withstand the turbulence.
3. Minimally Affected: Companies that focus on emerging markets, such as South Africa and the Middle East, report lower dependence on U.S. business.
4. Directly Affected: Manufacturers heavily reliant on the U.S. market, especially those lacking brand recognition, have faced the harshest blow, including order cancellations and client hesitations due to ongoing uncertainty.

In today’s deeply interconnected world, it has become increasingly clear that cooperation, not isolation, is the path to shared success. Trump’s tariffs may have triggered crises and anxieties for many, but perhaps now is the right time for global businesses to rethink where and how they pursue sustainable trade partnerships.

Related:

• HP to Cut Jobs Amid Financial Growth and Tariff Pressures
• Ricoh to Shift MFP Production from China to Avoid US Tariff
• Can America Still Be Trusted: Global Uncertainty and Trade Tensions

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