As president Donald Trump It threatens to impose it The first segment of customs duties In the world on Saturday, Chinese manufacturers are preparing to influence.
Although Trump suggests the biggest first swing in Canada and Mexico With a 25 % proposed tariff, the US President still has China on his radar. After a report stating that the administration could delay at least some duties until March 1, the White House said on Friday that Trump would follow up plans to slaughter 10 % tariffs on imports from China on saturday. On the campaign path, the customs tariff threatened Chinese goods by 60 % or more.
Trump claimed the definitions that enhance us from manufacturing and job growth, and early in his second term, used threats Gaining influence in politics negotiations. However, if Trump imposes fees, they can raise prices for consumers on everything from furniture to Electronics.
In China, it can harm new duties for exporters who depend on the American market. On a modern trip to the manufacturing belt in Guangdong County, CNBC found factory owners preparing to threaten the customs tariff. Here are three main meals:
The threat of customs tariffs already raises prices for consumers
Hoping to overcome Trump's tariff, the furniture seller Harry Lee doubles the number of products he ships to the United States and stores them in warehouses there.
The strategy is expected to force him to raise prices by up to 10 % – regardless of Trump's tariff.
He sells four out of five of his tables and other large furnishings for American consumers.
“I must ship them in advance and face more risks,” he said at the Foshan Factory.
His Tianyilded company plans to maintain the additional stock in the United States until the Trump tariff for China becomes more clear.
Chinese factories adopt confrontation strategies
In addition to storage, LI study other ways to avoid border taxes.
“There is one thing that we can do is choose these products, not on the tariffist and export them to the United States instead,” he said.
In the nearby industrial city of Guangzhou, the Zheng Yu water purification maker wanders all over the world to find a new production base to supply the United States outside China.
It plans to create assembly lines in a third country, and buy some equipment and components from China while contracting locally for some jobs.
Zheng Tesran Vietnam, Malaysia and Mexico are studying manufacturing rules, but they tend towards Dubai although the costs will be 30 % higher than China.
“The local market is very competitive. We wanted to jump from it for some time,” he said. “Trump's tariff gave us the final batch.”
Tesran founder is already in touch with his customers in the United States to discuss dividing definitions. He hopes that his partners will face at least half the cost.
Chinese factories have a collapse point – which may lead to a less choice for our shoppers
All companies that CNBC spoke had a collapse point that it was no longer logical to sell to the United States, tariff thresholds ranged from 20 to 60 %, depending on the industry and the size of the company's margins.
Another wild card is that another wild card is whether President Trump unleashes the global definitions that, in his condition, will raise the costs of Dubai.
“Then the United States is outside,” he said.
Throughout Guangzhou, LENG Rong, who makes skin care products, is concerned that he might have to stop exporting to the United States completely.
His goods were exposed to a 20 % northern tariff during Trump's first period and caused great losses to his company, Kenny.
With his delicate margins, Ling hopes that he can transfer the cost of any tariff for his customers.
“In the past, we all felt that the United States market was the greatest market that everyone wanted to sell. But with all aspects of uncertainty and unrequivant decisions, the United States is now less attractive,” Ling at the Guangzhou Factory said. “It is a real unfortunate.”
