'This is so hard': The Chinese small businesses brought to a standstill by Trump's tariffs

In recent times, many small businesses in China have found themselves in a difficult situation due to tariffs imposed by the United States. These tariffs have made it significantly more expensive for Chinese products to be sold in the US market. Lionel Xu, the owner of a company that produces mosquito repellent kits, expressed his frustration by saying, 'Trump is a crazy man. ' His products, which were once popular in Walmart stores across America, are now stuck in a warehouse in China, unable to be sold unless the tariffs are lifted. 'This is so hard for us,' he lamented. His company, Sorbo Technology, employs around 400 workers in Zhejiang province, and they are all feeling the impact of this economic conflict. Nearby, Amy, who sells ice cream makers for the Guangdong Sailing Trade Company, is also facing challenges. Her main customers are in the US, and she has already halted production. 'All the products are in the warehouse,' she stated. This scenario is common among many businesses at the Canton Fair, a major trade event in Guangzhou where companies showcase their products. When the BBC spoke with Mr. Xu, he was preparing to take some Australian buyers out for lunch, hoping to negotiate better prices. 'We will see,' he said regarding the tariffs, expressing a glimmer of hope that the situation might improve soon. 'Maybe it will get better in one or two months,' he added, crossing his fingers in optimism. The trade tensions between the US and China have led both countries to impose high tariffs on each other's goods. Just last week, the US maintained its tariffs on Chinese imports despite a drop in global stock markets. In response, China implemented its own tariffs on American products, creating confusion among traders at the fair, where over 30,000 businesses gather to display their goods. In the homeware section, companies showcased a variety of items, from washing machines to electric toothbrushes. However, the added costs from tariffs have made these products too expensive for many American companies to sell. The ongoing trade war is causing significant disruptions, with Chinese goods intended for American consumers piling up in factories. This situation is likely to affect American shoppers, who may have to pay higher prices for these products. China has taken a firm stance in this trade war, vowing to continue fighting until the end. Some sellers at the fair are not overly concerned about the tariffs. A man named Hy Vian, who was looking to purchase electric ovens, dismissed the impact of the tariffs, stating, 'If they don't want us to export – then let them wait. We already have a domestic market in China. ' He believes that they can focus on selling their products to Chinese consumers instead. With a population of 1. 4 billion people, China has a vast domestic market. The Chinese government has been trying to encourage consumer spending, but this effort has not been very successful. Many middle-class families have invested their savings in homes, only to see property values decline in recent years. As a result, they are now more inclined to save money rather than spend it. While China may be better positioned to endure the economic challenges than some other countries, it still relies heavily on exports. Last year, exports accounted for approximately half of China's economic growth. China is often referred to as the world's factory, with estimates suggesting that around 10 to 20 million people are employed in producing goods for the US market. Some of these workers are already feeling the effects of the trade war. Not far from the Canton Fair, there are numerous small workshops in Guangdong that manufacture clothing, shoes, and bags. A worker in one of these workshops shared, 'Things are not going well. ' He explained that he used to earn a decent wage, but now he is lucky to make a fraction of that amount. The worker mentioned that finding work has become increasingly difficult. Others making shoes on the street reported that they only earn enough to cover their basic living expenses. While some individuals in China take pride in their products, others are deeply concerned about the rising tariffs and the uncertain future. China is facing the possibility of losing a significant trading partner that purchases over $400 billion worth of goods each year. Economists are also warning that the US may be heading toward a recession. At the Canton Fair, many businesses have ceased sending goods to the US market. The uncertainty surrounding the situation is compounded by President Trump's unpredictable approach. He has continued to apply pressure on China, which has refused to back down. However, China has stated that it will not increase the current tariffs on American goods. They may retaliate in other ways, but for now, this provides both sides with some breathing room. There is reportedly little communication between Washington and Beijing, and neither side appears willing to engage in negotiations anytime soon. In the meantime, some companies at the Canton Fair are using the event to explore new markets. Amy hopes to expand her ice cream maker business into Europe, Saudi Arabia, and Russia. Others believe there is still potential for profit within China. Mei Kunyan, a shoe manufacturer, mentioned that he earns a good income selling to Chinese customers. Many major shoe manufacturers have relocated to Vietnam, where labor costs are lower. Mr. Mei has come to realize that 'the Americans are too tricky.