Trump's 104% Tariff Creates Panic Among Chinese Exporters: Shipments Plummet, Orders Cancelled, Cargo Abandoned at Sea, Factory Layoffs, and a Shift Towards Europe.
Trade War: The economic war between the United States and China has reached a critical juncture. U.S. President Donald Trump has imposed tariffs of up to 104% on goods from China, creating a climate of panic among Chinese exporters. Some traders are abandoning their containers at sea to avoid the tariffs.
Significant Drop in Shipments
According to a report by the South China Morning Post, an employee of a listed Chinese export company stated that their daily shipments to the U.S. have plummeted from 40-50 containers to a mere 3-6. With the Trump administration's new tariffs, the total import duty has reached 115%, crippling Chinese businesses.
Orders Cancelled Due to Tariff Fears
According to the company employee, all shipping plans to the Philippines, Indonesia, Malaysia, and Vietnam have been halted. Factory orders have been cancelled. In some cases, instead of recalling already shipped goods, the decision has been made to scrap them. One client stated that they will leave the container already at sea in the hands of the shipping company, as they won't find a buyer after the tariffs are imposed.
Chinese Traders Facing Heavy Losses
Chinese exporters report that the losses on each container now equal the profit they previously made on two. As a result, plans are being made to increase exports to markets such as Europe and Japan instead of the United States.
American Buyers Also Withdrawing
China is the world's largest exporting nation, and last year it exported $439 billion worth of goods to the U.S., while importing only $144 billion. However, due to the high tariffs, American companies are cancelling orders. Some reports indicate that approximately 300 containers worth of orders are being cancelled daily.
Factory Layoffs and Shift Reductions Begin
Due to the new tariffs and uncertainty, Chinese factories are reducing operations. Many employees are being called in for fewer shifts. Meanwhile, companies with American branches have begun laying off frontline workers. The decline in export demand is leading to a worsening employment crisis.
