Chinese exporters are provoking US market due to Trump's fees

For an increasing number of Chinese exporters who fought the trade war in the first term of President Donald Trump and invested for years to attract the purchase power of US consumers, it appears that the time of withdrawal from the US market has come. With customs duties on Chinese imports reaching 145%, factories exporting goods such as coffee machines and yoga pants have stopped their shipments to the United States and reduced the frequency of production to just three or four days a week. Although Trump indicated that these drawings would not remain at this high level forever, some of the anxious exports have already begun to develop permanent plans to extract from the US market and go to other areas such as the Middle East to drain their goods. “The exporters are currently trying to escape from the current crisis,” says Wang Xin, president of the E -Border e -Border Trade Association, which represents about 3000 exporters. Stop fighting for the US market among these exporters, a retail business in Guangzhou, selling underwear and yoga pants via “Amazon” platforms, “Timo” and “XN”. The company has decided since the beginning of this month to stop charging products to the United States, and increased the prices of some of its best sales products by up to 30% to collect liquidity. “We held some emergency meetings at the end of March to discuss our upcoming steps, and the conclusion was: Stop fighting for the US market,” Huang Lun said. As China’s exports fall, US consumers are expected to face a rise in prices and lack of basic commodities in the coming months. These dark expectations are added to the estimates of many economists who are likely to enter the United States in an economic stagnation, if the White House administration does not withdraw its threats to impose more fees. China will also suffer from major economic consequences. In light of the freezing of its largest market, many factories have reduced their production to three or four working days a week, according to Wang, which cited a modern industrial questionnaire conducted by the association. She added that bank loans and salaries owed to workers mean that the coming months will see a wave of closure of factories and the demobilization of workers. Jenny Huang, a sales employee in a curtain industry in Ninjo, is trying to diversify his markets away from the United States, although 90% of her current customer base – which was suddenly stopped – was there. She said her company would not consider exporting to the US market again unless the vision is clear about customs duties. Until then, it explores alternative markets such as Southeast Asia and the Middle East. “When the fees rose to 54%, people suffered from poor profits, but they decided to stay in the market, trying to discover new markets with cash flow from the United States. After the fees reached 125%and then 145%, they decided to withdraw, because they insisted to stay faster,” Wang added.