China orders vanished
- Chinese exporters report U.S. orders have “nearly vanished” after the introduction of a 10% surcharge. (x.com) - The exporters specifically attribute demand collapse to a new 10% tariff surcharge on shipments. (x.com) - The reporting came as officials prepare for high-stakes meetings, including a prospective May visit to China. (x.com)
Chinese exporters at the Canton Fair said U.S. orders dried up after Washington’s latest China tariffs took effect in April. (reuters.com) At the fair in Guangzhou on April 15, medical-device seller Candice Li said orders from U.S. customers had vanished after tariffs on Chinese goods rose to 145%. She said 60% to 70% of her company’s business came from American clients. (reuters.com) Other exporters told Reuters the U.S. market was “frozen,” and some said buyers were asking factories to shift production to countries such as Vietnam to avoid the new duties. The Canton Fair itself opened with more than 30,000 exhibitors, making it China’s biggest export showcase at a moment of falling demand from the United States. (reuters.com) (gov.cn) The tariff jump came in stages. President Donald Trump signed a reciprocal-tariff order on April 2, then raised the China rate again on April 8 and April 9 after Beijing announced retaliation. (govinfo.gov) (whitehouse.gov) Washington also moved against low-value parcels. The White House said duty-free de minimis treatment for covered goods from China and Hong Kong would end on May 2, 2025, cutting off a channel used by many e-commerce sellers. (whitehouse.gov) The slowdown soon showed up in shipping forecasts. Port of Los Angeles Executive Director Gene Seroka said on April 29 that incoming cargo volume from Asia would fall more than 35% the following week as importers canceled or delayed orders. (reuters.com) Some Chinese factories responded by halting U.S. shipments, cutting workweeks, or looking for buyers in the Middle East and Europe. Bloomberg reported on April 23 that several exporters were making plans to pull back from the U.S. market altogether if the tariff rates held. (bloomberg.com) The freeze in orders became part of the backdrop for the first senior-level U.S.-China trade talks after the tariff escalation. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng in Geneva on May 10 and 11, and both sides said they had made progress. (reuters.com) For exporters in Guangzhou, the immediate problem was simpler than the diplomacy: goods made for U.S. buyers were suddenly too expensive to move. The result was fewer orders, idle production lines, and a scramble to find customers somewhere else. (reuters.com)
