For years, vendors at the world’s largest wholesale market in Yiwu, China have been exporting Christmas and Halloween decorations to the U.S. But now, they’re in the middle of the escalating U.S.-China trade war.

Yiwu

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Vendors in Yiwu, China, are feeling the impact of the ongoing trade disputes between the United States and China. Historically known for exporting an array of holiday decorations, these market actors are now grappling with inhibitive tariffs that have disrupted their business operations. With major customers in the US, many vendors, such as Run, are witnessing significant revenue losses, as buyers either demand discounts or cancel orders altogether.

Yiwu, a key player in global trade with the US, shipped over $11 billion worth of goods to America last year alone. However, according to local vendors, these figures may decline if the trade tensions persist. The strain is particularly evident for businesses that have relied heavily on US buyers, with some vendors already losing over $135,000 in revenue.

To navigate these challenges, Yiwu's vendors are exploring alternative markets. Some are shifting focus to European customers, hoping to stabilize their operations in such uncertain times. Others are investing in domestic product lines as a way to diversify their client base amidst rising trade tensions.



Could tariffs ruin Christmas?

Christmas might be in trouble this year. We've been cooperating for a long time, but because of the tariffs, our transactions have stopped. It's very sad. Vendors like Run, here in the eastern Chinese city of Yiwu, are on the front line of the escalating trade war between China and the U.S. There are 10 customers, and 2 of them gave 20% discount. I basically gave them the cost. The other 8 customers basically cancelled their orders. As a result of the discounts and cancellations, Run says she lost more than $135,000 in revenue. She's been exporting Christmas dolls like the one she's holding for 15 years. Last year, Yiwu sold $80 billion worth of goods to the world, and 14%, or more than $11 billion of these, went to the U.S. But these numbers could see a drop, and holidays in America could look very different. The sales have decreased a lot. We had some orders a year ago, so they might be a bit more stable now. Orders from the U.S. make up about half of Nie's business. She says to deal with the uncertainties, finding alternatives is the way to go. Next, we're going to shift our U.S. route to our European customers. Last year, we designed and sold our domestic goods. And when it comes to the day-to-day life...

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