Chinese Exporters Applaud Relief in US-China Trade Dispute

The recent temporary agreement between the US and China to lower tariffs is a positive development for Chinese exporters who have been navigating uncertainty since the onset of the trade war between these two major economies.

The tariffs imposed by the Trump administration, currently at 145% on most Chinese imports, are set to decrease to 30% by May 14. In parallel, China’s retaliatory tariff of 125% on US goods will drop to 10% during a 90-day cooling-off period, as announced by officials from both nations following discussions in Geneva on Monday.

The US is also reducing the “de minimis” tariff on small packages from 120% to 54%, a change that has already influenced pricing on e-commerce platforms such as Shein Group and PDD Holdings’ Temu.

A medical equipment manufacturer in Shanghai mentioned that easing trade tensions would allow them to postpone planned layoffs and the shutting down of production lines scheduled for later this month. While this brings some relief, it doesn’t alter the company’s strategy of relocating some manufacturing outside China to bypass remaining tariffs, as noted by sales manager Pang Ling, whose company employs hundreds and earns about half of its $70 million in annual sales from the US.

“Now, we don’t need to let anyone go,” she stated in a phone interview. “I’m optimistic about this year’s sales from the US once again.”

Various Chinese factories producing items from coffee machines to yoga pants have halted shipments to the US and cut back on production, operating only three or four days a week, following the imposition of high tariffs by President Trump in April.

Before the tariffs took effect, demand for many Chinese products surged on marketplaces like Temu and Shein; however, sales fell sharply afterward.

Despite the economic hurdles, President Xi Jinping has observed a rise in nationalism within China, leading him to resist US pressures. At the same time, Trump faces increasing calls from business groups, market stakeholders, and party members.

‘Hooray!’

Sun Yang, who runs a business selling face and body painting tools—including brushes and palettes—on Temu’s platform, found the reduced tariffs timely as his stock in US warehouses, responsible for all his sales, was dwindling.

“The entire office erupted in cheers when we learned the news,” Sun recounted from his headquarters in Shenzhen, near Hong Kong.

Sun has seen mid-double-digit sales growth over the past two months as American consumers rushed to buy products before prices escalated.

“Returning to 30% means we won’t face pressure from prices increases in the foreseeable future,” Sun remarked. “I hope consumers can regain confidence and start shopping again.”

With a truce established in the US-China trade conflict, Guangzhou-based freight forwarder Bruce Wen anticipates a surge in new orders shortly after a quiet April.

“Ports will be busy again,” Wen stated, mentioning that he ships a vast range of items, from kitchenware to decorative license plate frames. “In fact, we’ve begun to see some urgent clients coming back over the past two weeks, and many more are expected in the upcoming weeks.”

The easing tensions prompted Lily Lu, who owns a clothing accessory export business in Zhejiang province, to reach out to her US clients. “I’ll be calling my US customers tonight to gauge their feelings and see if they’d like to resume orders,” she noted.

However, some are more cautious about the future of Sino-American trade relations. “A 90-day period is too short to adjust strategies for new orders and price negotiations,” said Chen Lei, a supply-chain manager for an appliance manufacturer supplying US retailers like Walmart Inc. and Costco Wholesale Corp.

“It’s still too risky and unpredictable for major US clients to place large new orders,” Chen added from his office in Foshan, Guangdong province. He remarked, “It’s not unusual for the US government to announce something in the morning and completely change it by the afternoon.”

© 2025 Bloomberg

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