Facing Trump tariffs, China’s exporters hunker down for long, winding Year of the Snake

As all Chinese manufacturers and exporters will soon return to work facing 10 per cent additional tariffs for shipments to the US in the Year of Snake, many are not so anxious, though they are still preparing for bigger shock waves.

On top of those already in place, the fresh tariffs on Chinese goods will go into effect on Tuesday, after US President Donald Trump at the weekend signed three executive orders that also covered 25 per cent duties on goods coming from Canada and Mexico.

“While a 10 per cent increase is not ideal, it is within our expectations,” said Paul Tai, regional director at retail solutions firm Mainetti, which designs and exports garment hangers. “We work closely with our customers and partners in the US to mitigate the impact.”

The new tariff on Chinese goods, which is much lower than Trump’s previous threat of a 60 per cent hike, will still put additional downward pressure on China’s economic growth, with uncertainties remaining on the timing and scale of future tariff hikes, according to economists.

“It is still early days, however, so it would be a mistake to assume that the softer touch on China will endure,” said Stephen Olson, a visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore.

“Trump prides himself on unpredictability, so we could be in a completely different world next week.”