Chinese factories stop, restart the work to reduce our tariffs

For years, Christmas goods were hitting American stores before holidays, as retailers are trying to take advantage of the profitable holiday season – a phenomenon known as “Christmas crawl”. This year, however, retailers risk empty shelves during the holiday itself.

The definitions can be Grinch that disrupts celebrations at the end of the year, even as Chinese factories and their customers in the United States move to uncertainty in the customs tariff to ensure well -equipped shelves in time for Christmas.

Soon after US President Donald Trump revealed a sweeping tariff on April 2 – including a 34 % tariff on imports from China, which was later intensified to 145 % – several retailers in the United States have stopped their orders from Chinese suppliers, Forcing factories to stop productionAccording to CNBC interviews.

However, industry representatives say that some production has been reinforced in the past few days, as companies in the United States are resuming orders, with concerns about work disturbances and lost opportunities that exceed aspects of induction.

“If you do not start production in the next two weeks, you will start missing the black Friday and Christmas,” Cameron Johnson, partner partner in Shanghai at Tidalwave Solutions, said in an interview on Tuesday.

“Both sides are trying to be somewhat flexible,” he said. “Retaires began to realize whether these supply chains stop, it will be very difficult to run and run (again).”

Johnson described how, for example, stopped on the orders of a spoons manufacturer that would affect the company that revolves around the steel, as well as iron ore fuse. “The supply chains started, on the source, also closed. If they are closed, even if we have a kind of deal, it will take time to restart).”

Despite some of the redisher -made cargo through other countries, it will be difficult to achieve the replacement of current supply chains and shipping tables overnight. For 36 % of American imports from China, more than 70 % of the main mainland suppliers can be obtained, according to Goldman Sachs analysis earlier in April.

For Aldik Home, a home commodity store in Los Angeles, Christmas is the most crowded time of the year, when it displays a wide range of artificial Christmas trees, motifs, tapes, spins’ flowers, attack and other motifs.

Brian Gold, a family-run business manager, said he put this year’s Christmas orders in January and expects eight shipping containers of holiday decorations on their way now from China-where sources of more than 95 % of the store’s stock were. “There is no local production for any of the Christmas products that we sell,” Gold said.

Because of the current definitions, the store is now facing a customs bill of about one million dollars. Gold said the additional cost does not leave him any option but to transfer him to consumers: “We do not have a million dollar pillow in our margins.”

Several sellers in the United States have stopped orders from Chinese suppliers or use slave warehouses-where goods can be stored without the immediate condition of paying customs duties-the hope of reducing. Some have already added a tariff fee to their prices.

Renault Anguran, CEO of Agilian Technology, an electronics manufacturer in China, said electronic products should be charged from China by early September to strike American shelves immediately after the Thanksgiving holiday at the end of November, taking into account customs clearance and distribution chain. The Guangdong company offers half of its products to the United States market.

Anguran said that it takes about six months to manufacture, test, collect and pack, which means that suppliers should start preparing for these requests in March.

Many buyers in the United States have started storing inventory since late last year, expecting the high definitions after Trump returned to his post. With the continued front loading, China’s exports to the United States increased by 9.1 % in March last yearAccording to the CNBC account for official customs data, while imports decreased by 9.5 % per year. Trade numbers are expected to be released on April 9.

But these front loading efforts began to diminish. The number of container ships that transport goods from China to the United States He decreased sharply in recent weeksAccording to Morgan Stanley. The Investment Bank said that the shipments that were canceled also increased by 14 times in the four weeks from April 14 to May 5, compared to the period from March 10 to April 7.

In April, a new export orders from Chinese factories fell to its lowest level since late 2022, according to what he said National Office for Statistics.

“For the time being, we do not have many purchase orders for the next few months of American clients,” said Angeran. Most of his clients stored the stock that was shipped to the United States before the new Chinese year at the end of January, with some requests flowing in March and April.

“Some buyers in the United States are waiting to see if the customs tariff will be reduced to a more acceptable level in May before the resumption of shipments. Currently, the company has a production of requests from its customers in the United States.

Modern reports have indicated some identification relief on the ground, as both governments seek to activate the economic effects of punitive duties. According to what was reported, China gave tariff exemptions on some American goods, including Medicines, air space equipment, semiconductor, and Ethane Imports.

In the latest relief, Trump signed Executive Exemption of foreign cars and spare parts from additional fees, following a previous decline in the customs tariff on a group of electronic products, including smartphones, computers and chips.