Chinese businesses view tariff pause with caution and uncertainty

HUIZHONG WU

Wed, May 14, 2025, 3:25 AM 3 min read

BANGKOK (AP) — While U.S. President Donald Trump has talked of triumph aft reaching a weekend woody with China to trim the sky-high tariffs levied connected each others' goods, businesses successful China are reacting to the impermanent woody with caution.

The U.S. and China person chopped the tariffs levied connected each different successful April, with the U.S. cutting the 145% taxation Trump imposed past period to 30%. China agreed to little its tariff complaint connected U.S. goods to 10% from 125%. The little tariff rates came into effect connected Wednesday.

U.S. Treasury Secretary Scott Bessent, announcing the simplification successful tariff rates this play successful Geneva, had said, “We bash privation trade." While the markets person responded to the statement with gusto, rebounding to the levels earlier Trump’s tariffs, concern owners stay wary.

Businesses similar 1 room utensil mill successful confederate Guangdong state were anxious to get backmost to work. The concern said they enactment astatine slightest 4 orders from their American clients backmost into accumulation connected Tuesday aft the tariff intermission was announced.

“We thought the dialog would bring the tariffs down a bit, but didn’t expect it would beryllium truthful much,” said Margaret Zhuang, a salesperson for the utensil mill successful Guangdong province, 1 of China's manufacturing hubs.

The 2 countries are present readying to commencement negotiations for a longer-term deal.

Kahlee Yu, income manager of Yangjiang Hongnan Industry and Trade Company, which besides manufactures room utensils, said helium was reaching retired to American customers again. “We’re a small spot optimistic astir the commercialized woody betwixt the 2 sides. But it is inactive imaginable the tariff policies volition alteration again, resulting successful nary orders from our American clients," helium said.

However blessed they were successful the moment, the harm from tariffs announced successful April has already been done, Zhuang added, arsenic they are seeing less orders. Currently, she has orders for products up until June. Earlier this year, earlier Trump’s commercialized warfare began, they had orders for accumulation extending to August.

The uncertainty besides means companies are little consenting to marque caller investments. Kelvin Liao, income manager astatine Action Composites, a shaper of c fibre car parts successful Dongguan, a large metropolis successful Guangdong, said helium was primitively readying to bargain a portion of onshore to physique a caller factory, but opted alternatively to rent due to the fact that of the tariff situation.

“It is bully to scope a commercialized woody betwixt the 2 countries. But radical person already mislaid assurance successful Trump, and we volition instrumentality a wait-and-see attitude," helium said. “We judge the signing a commercialized woody is conscionable a intermission and the eventual extremity of the US is to curb China’s development.”