Wed, 14 May 2025

Wed, 14 May 2025 Relief on China's factory floors as US tariffs put on hold

A surprise deal in the trade war gives businesses breathing room - but many now want to find new markets.

* Derek Wang, an engineer from Foshan, China, has been making high-end air fryers for the US market with 40 workers.
* His business was impacted by Donald Trump's tariffs on Chinese goods entering the US, which reached 145%.
* Mr. Wang had to pause production due to customer requests but is now resuming work as a trade deal comes into effect.
* The agreement reduces tariffs from 125% to at least 30% and allows businesses to negotiate costs with clients.
* Mr. Wang believes this crisis has accelerated his plan to diversify away from relying solely on the US market, citing government encouragement for businesses to expand globally.
* Many Chinese factories have faced difficulties due to the trade war, including reduced hiring and production lines being shut down.
* Workers in Foshan often travel long distances to find employment and are affected by rising unemployment rates and housing costs.
* The latest agreement has prompted a surge of orders between US and China as businesses wonder if it can last.
* Some business owners are considering diversifying their sales away from the US market due to these changes.
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