Chinese exporters have tried to respond to US tariffs by hiking prices, canceling shipments and redirecting goods in other countries, as the two largest economies in the world are preparing for economic divorce.
The US president announced on Wednesday 90-day break In additional tariffs for most countries, but retained its 104 % tariffs for China and imposed an additional 21 % to punish Beijing for revenge.
In response, Chinese sellers on E -Trade platforms raise prices to 70 % for US consumers, while others are preparing to get out of the US market as penalties make trade unsustainable, according to one of the largest associations for E -Trade.
“Chinese vendors will not be able to take over the additional (financial) burden of US tariffs,” said Wang Xin, president of the Cross-Border E-commerce association in Shenzhen, an industry, which represents more than 2,000 sellers in China.
“We are going through fire and water,” said Wang, whose members sell US products to Amazon, as well as through Shin and Temu.
A Guangzhou -based Temo salesman said some colleagues are building factories in third countries, such as Jordan, to complete the goods and then re -expose them to the United States. Other sellers have experimented with diverting goods through countries with trade agreements with the United States, they say.
But they added that there was a huge amount of uncertainty for Chinese manufacturers moving out of the country after Trump signaled his willingness to expand tariffs outside China.
So far, most Chinese traders are still in waiting and viewing mode. “It is extremely difficult to make long-term plans right now,” said Hu Ianianlong, Chief Executive Officer of the brand factory, e-commerce platform.
Shipping companies have said that transacincing orders have been canceled and they expect increased disruption in the coming weeks.
“Now we see a huge amount of cancellations,” said one person in the freight industry in Shanghai. “There is only so much uncertainty that people pull containers.”
“At the moment we have a new order of about 100 containers to enter Houston and everything is waiting,” the person added. “The situation changes almost to an hour.”
There are also signs of cancellations in the other direction, where trade is now vulnerable from Beijing’s retaliatory tariffs for US imports.
One shipment of gas from the United States was canceled due to higher Chinese tariffs, according to a person familiar with the situation. The United States also exports agricultural products, machinery and other products in China.
China brought it into effect on Thursday An additional 84 % tariffs for Titus-for-Tate Against the United States as planned, bringing the total number of US imports to more than 100 %. But although he signaled that the president Si Jinininping would not withdraw from the escalation of the trade war, he did not make an immediate move to match even Trump’s higher rate.
“If you want to talk, the door is open, but the dialogue must be implemented on an equal basis based on mutual respect,” the Chinese Ministry of Trade said. “If you want to fight, China will fight to the end. Pressure, threats and blackmail are not the right way to deal with China.”
Ranginbi has weakened at the lowest level since 2007 In the latest sign, Beijing is ready to tolerate gradual depreciation in response to US tariffs.
Forhor Renanginbi slipped to RMB7,351 a dollar in early trading on Thursday, the weakest level for nearly 18 years, after the National Bank of China weakened the fixed currency for the sixth last day. Subsequently, losses for trade in RMB7,337 per dollar decreased.
US Department of Treasury Secretary Scott Biesen warned China on Wednesday against the devaluation of the currency.
Beijing has also dealt with many diplomacy, conducting talks with European Commission Commissioner Maros Jefcovic and Malaysia’s Trade Minister Zafrul Aziz, whose country is president of the South East Asian trade bloc.
“China is ready to work with its trading partners, including ASEAN, to jointly maintain the multilateral trade system,” the Chinese Ministry of Trade said in a statement.
US capital rose after Trump’s announcement, with the S&P 500 blue chip index closed by 9.5 percent. The rally spread on Thursday, with Japan closing 8.1 %, and Taiwan Taix advanced 9.3 %. The Stoxx Europe 600 index increased by 5.5 % in afternoon trading, while the German DAX increased by 8.3 % and FTSE 100 advanced 6.1 %.
In contrast, China’s stock indexes were relatively muted, but closed despite the tariff flash of confidence. Analysts have speculated that the Government-backed “national team”-institutions-Delumeni is behind the rise of 1.3 % in the CSI 300. Hong Kong Hang Seng’s index closed 2 %.
Reporting by: Robin Harding, Jan Ho-Him and Arjun Neil Alim in Hong Kong, Oeo Lehi and Eleonor Oilk in Beijing, Thomas Hale in Shanghai, Laura Onita and Oliver who tell in London and Harry Dempsey in Tokyo in Tokyo
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