BUSINESS

Chinese Exporters Move Quickly After Tariff Rollback, but Remain Cautious

By Feng Yiming, Sun Yanran and Denise Jia

Published: May. 13, 2025 5:53 a.m. GMT+8

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A container ship docked at the Port of Long Beach in California on April 28, 2025.

Chinese exporters are cautiously resuming shipments to the United States after a surprise tariff rollback by Washington and Beijing but remain wary of policy swings. Numerous companies are waiting for customs confirmation before dispatching goods and are speeding up efforts to diversify into domestic and Southeast Asian markets.

A joint statement issued Monday pledged to reduce or suspend a significant portion of the punitive tariffs by May 14. The U.S. agreed to cancel 91% of its previous tariff hikes on Chinese goods and suspend 24% of additional “reciprocal” tariffs. China responded with identical cuts.

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The U.S. and China agreed to reduce or suspend significant tariffs by May 14, with the U.S. canceling 91% of prior hikes and both sides making identical cuts, sparking cautious optimism among Chinese exporters.
Exporters are resuming shipments but remain wary, seeking customs clarity, diversifying markets, and negotiating tariff costs with clients.
Some manufacturers focus on domestic and Southeast Asian markets due to ongoing uncertainties, with currency fluctuations also impacting profit margins.

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Who’s Who

Shenzhen Xiangfeiyang Technology Co. Ltd.: Shenzhen Xiangfeiyang Technology Co. Ltd. is a clothing exporter in China. The company has been holding inventory in warehouses, awaiting a formal notice from U.S. Customs about the new tariff rules before contacting clients. There is confusion over whether the new tariffs apply to shipments leaving China or arriving in the U.S. on May 14, and the company is considering how to share or absorb tariff costs with customers, especially larger clients.

Desay Group Co. Ltd.: Desay Group Co. Ltd., based in Wenzhou, is a footwear manufacturer with over 2,000 factory workers. After the tariff rollback, it resumed shipments to American buyers, though footwear still faces a 46% total tariff. The company is negotiating tariff cost-sharing with clients and is increasing domestic sales to reduce reliance on overseas markets. The trade war has spurred the company to pursue brand building and innovation for longer-term competitiveness.

Guangzhou Xinggao Culture Media Co. Ltd.: Guangzhou Xinggao Culture Media Co. Ltd. is a toy maker whose partner, Zhang Peng, said the U.S. market is now too unstable to depend on. The company is shifting its focus to Southeast Asia and other countries, while also expanding domestic e-commerce efforts through livestreaming platforms such as Douyin to maintain production capacity.

Shantou Feiying Technology Co. Ltd.: Shantou Feiying Technology Co. Ltd. is an outdoor gear exporter that was not affected by the tariffs but supported the rollback. CEO Wu Yuqin noted they made price concessions to help U.S. clients during the high-tariff period, but now that tariffs have dropped to 30%, such concessions are no longer needed. Wu also mentioned that currency fluctuations, especially a weaker dollar, pose a greater threat to their profit margins than tariffs.

AI generated, for reference only