Old Friends' Night Talk: Trump's Tariffs and the 'Chinese-style Breakthrough'
Xiao Ming: Old Wang, it's been a month since Trump's 'Liberation Day' tariffs came into effect, how are the exporters doing? Are they completely confused?
Old Wang: Not exactly. The tariffs are ridiculously high, and the policies change every few days. Exporters are experiencing 'two extremes': some are frantic, while others are as calm as if they are watching a play. Old Li from Henan relies 70% on business from the US, logistics costs are skyrocketing, should he invest in overseas warehouses? It's quite a dilemma.
Xiao Ming: Haha, is the US market still attractive? Can we not survive without it?
Old Wang: Attractive, but not obsessed. $440 billion in exports is a big deal, but the percentage has dropped from 19% to 14.7%. Boss Hu from Yiwu directly stated, 'US orders? I won’t feel sorry if I lose them! There are wealthy people in the Middle East and South America waiting in line.'
Xiao Ming: Impressive. With such harsh tariffs, won't prices skyrocket?
Old Wang: They did rise, SHEIN and Temu are gritting their teeth and raising prices, and Amazon tried to impose tariffs but was shot down by Trump. Walmart is worse; they wanted Chinese suppliers to take the blame, but the Ministry of Commerce gave them a glare, so they obediently made US buyers foot the bill. The Chinese supply chain is in the global spotlight; who dares not to use it?
Xiao Ming: What clever moves are the exporters making? They can't just sit and wait, can they?
Old Wang: Build factories in Vietnam? They want you to bring technology, not just be a 'middleman.' The markets in South America and Africa are booming, and Yiwu merchants are starting to learn Arabic and Spanish, preparing to 'cast a global net.' Tariffs are a pit, but Chinese companies have managed to turn that pit into a dance floor.
Xiao Ming: Trump wants to 'choke' us, so how come China is getting stronger despite the setbacks?
Old Wang: The marketplace is like a battlefield; bullets fly for a while, but there’s always a way to break through. Cheers to Chinese resilience; what are tariffs? Business continues as usual.