Yiwu Traders Unfazed by U.S. Tariffs, Adapt Strategies to Soften Impact

Yiwu, China: Traders in Yiwu, China’s premier export manufacturing hub, remain largely unfazed by U.S. tariffs and trade restrictions, with many having preemptively adapted their business strategies to mitigate the impact.

Yiwu, located in Zhejiang province, is the world’s largest wholesale hub for small manufactured goods, exporting a vast range of products—including Christmas decorations and costume jewelry—to global markets, including the United States.

“We anticipated that Trump would come to power,” said Cheng Haodong, chairman of Beisi Group, which exports products ranging from clothing to water bottles. “Once he assumed office, we adjusted accordingly. In fact, we had prepared for this in advance.”

Monitoring overseas media, Cheng’s company took strategic steps, including opening a liquid laundry detergent factory in Tennessee in April—part of a broader effort to maintain access to the U.S. market amid tightening trade policies.

Limited Impact on Yiwu’s Exporters

Despite Trump’s campaign pledge to impose 60% tariffs on Chinese imports—later revised to 10%—traders in Yiwu remain optimistic. While the U.S. has also revoked duty-free treatment for low-cost Chinese imports, many businesses claim the impact will be minimal.

“This time, the shock won’t be too big for us,” Cheng remarked, declining to provide specific sales figures.

Beisi Group, like many other Yiwu-based companies, exports goods through various channels, including U.S. e-commerce platforms such as Temu and Shein. Analysts predict these platforms may be hit hardest by the repeal of the ‘de minimis’ rule, which previously allowed low-value imports to enter the U.S. duty-free.

However, traders at Yiwu’s sprawling wholesale markets, which resumed operations after China’s eight-day Lunar New Year break, remain confident.

“Even if tariffs rise to 50%, it won’t affect us,” said Zeng Hao, owner of Jinqi Wanju, a company specializing in toys such as brightly colored dinosaur figurines. Zeng believes his firm’s high-profit margins will allow it to absorb some of the tariff burden, while downstream suppliers may also adjust pricing accordingly.

China Prepares Countermeasures

Trump’s latest trade actions have reignited fears of an escalating trade war between the world’s two largest economies. In response, China is considering imposing counter-tariffs of up to 15% on select U.S. goods.

Yet, according to Abby Jin, a sourcing agent who procures goods from Yiwu for clients in the U.S., Australia, and the Middle East, demand for Chinese products remains strong.

“We can adjust by slightly reducing profit margins or modifying costs. Ultimately, the additional expenses will be passed on to consumers in their respective countries, meaning they will bear the consequences of their own economic policies,” Jin explained.

She added, “For the U.S., the real question is whether they can find a suitable alternative to replace China as a trade partner.”

While the global trade landscape remains uncertain, Yiwu’s exporters appear confident in their ability to navigate the shifting economic tides.