The operations in Yiwu, the planet’s biggest wholesale market, show how challenges brought about by Washington’s tariffs have disrupted international trading practices.
Amid the labyrinth of stalls at Yiwu’s small-commodities market – the world’s largest wholesale hub, located in eastern China – Canadian retailer Luke Therrien weaves through aisles of Christmas trinkets, keychains and gadgets, scanning for suppliers he once sourced through American middlemen.
These intermediaries would select products from numerous Chinese manufacturers and repackage them for North American retailers such as Therrien, who leads his firm.
However, with escalating trade conflicts, inventory shortages, and tariff issues cropping up north of the border in the United States, Therrien has decided to go directly to the origin. This change adds several weeks of work and logistics challenges—but it could also guide him towards a more sustainable and economical supply chain solution.
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Whenever one door closes, another opens,” Therrien stated. “This will pose challenges for us during this specific season since we are preparing for the Christmas market. However, from a pricing standpoint, it undoubtedly works in our favor over time.
Anyone involved in business today will need to be adept at finding innovative methods for sourcing goods; this is simply an unavoidable fact. Increasingly, we’ll have to shift much of our buying activities beyond U.S. borders and seek out more direct suppliers.
The ongoing trade conflict extends beyond unsettling the planet’s top two economic giants—it is subtly remapping the landscape of international supply chains. Tariffs have transcended their role as mere financial considerations; they are now substantially altering how products are obtained, exchanged, and transported internationally.
On one side, purchasers such as Therrien are sidestepping American middlemen and establishing direct connections with Chinese manufacturers. On the flip side, Chinese sellers are observing increasing disruption within the U.S. marketplace—ranging from backups at ports of entry to inconsistent duty administration—as strain begins to wear down established trading pathways from the inside out.
Huang Feng, who ships over 70 percent of his products to the U.S., mentioned that inconsistent tariff implementation has created an increasingly uncertain environment. Sometimes certain containers get taxed, while others do not.
He mentioned that they could potentially face additional payments down the line, though specifics remain unclear regarding timing and method. The situation is chaotic as some deliveries incur taxes while others do not.
He mentioned that although his primary focus has been the US market for a considerable time, transitioning to other countries presents significant challenges—particularly due to the size of current operations and established standards, along with the ongoing advantage exporters gain from the supremacy of the United States dollar.
Should the dollar cease being globally significant, Huang stated that he wouldn’t keep conducting business with the United States.
“I wouldn’t choose to invest further in the United States,” he stated. “The nation’s financial reputation is deteriorating. I lack trust in it—and frankly, not much fondness either.”
The US dollar continues to be the leading global trade currency, supported by extensive capital markets and consistent stability. Exporters frequently prefer conducting transactions in dollars due to their predictability and advantageous exchange rates—this being a primary factor for many who still depend significantly on the American market regardless of increasing risks.
Washington has imposed tariffs totalling 145 per cent on Chinese imports so far this year, bringing the effective tariff rate to about 156 per cent. According to a fact sheet released by the White House, China now faces tariffs of up to 245 per cent.
Kwong Boey, a supply-chain practitioner based in Suzhou who sells home appliances to North America, said his supply chain has gone from disrupted to broken.
“All fresh orders are canceled, and all current orders are paused,” he stated, mentioning that shipping containers were reclaimed from Chinese ports, and ships heading to the United States have been instructed to return.
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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.
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