How Trump’s Tariffs Are Threatening Christmas from China’s “Santa City”
In Yiwu, China — famously known as “Christmas Town” — rows of twinkling lights, Santa dolls, and festive ornaments fill the world’s largest wholesale market. This city produces nearly 90% of the Christmas decorations used in the U.S., but this year, its holiday spirit is dimmed.
The reason? President Donald Trump’s new tariffs on Chinese goods — now exceeding a historic 145% — are hammering the city’s vendors. The trade war, reignited over fentanyl and dubbed “reciprocal retaliation,” has wiped out long-standing U.S.-China business ties.
For Ran Hongyan, who’s been exporting Christmas items to America for 15 years, eight out of ten U.S. clients canceled their contracts, costing her over $135,000. “We were like friends,” she said. “Now they’re gone.”
Yiwu exported $81 billion worth of goods last year — $11.5 billion to the U.S. alone. But since tariffs hit, the once-bustling market has seen fewer American buyers and more anxiety. Even vendors without U.S. clients, like imitation flower seller Li Xinyao, are feeling the pressure. “If people can’t live happily, who will care about decorations?” she asked.
Some sellers are pivoting to the EU or online markets. “I’m pushing my Halloween products to Europe now,” said Nie Ziqin, who lost half her business due to the tariffs.
While China has retaliated with tariffs on U.S. goods, many in Yiwu still hope for peace. “We want understanding,” said Li. “But the damage might already be done.”
In this global tug-of-war, even Christmas isn’t safe.
