Analysis-'It's like throwing darts blindfolded'; tariffs take toll on Chinese exporters

Last week, Trump introduced an additional 34% tariff on Chinese goods as part of steep levies imposed on most U.S. trade partners, bringing the total duties on
While some in
For many, Trump's blanket tariffs threaten to upend supply chains, and navigating the twists and turns of business negotiations and trade policy has become increasingly difficult. His world-wide tariffs strike Chinese exporters' two main strategies to blunt the impact of the trade war: moving some production abroad and increasing sales to non-U.S. markets.
"It's like throwing darts blindfolded. You don't know what direction you're going in. You don't know where the tariffs are going to land," said Larry Sloven, who has sourced from
Chinese suppliers of low-end goods to U.S. conglomerates that are already operating on razor-thin margins have been hit particularly hard.
Fuling, which sells eco-friendly tableware to U.S. fast-food giants including KFC and McDonald's, said this week in response to fluctuations in its stock price that Trump's tariffs would "further negatively impact the company's operations".
The company, which was designated a "manufacturing champion" by
A 20% tariff imposed on
Suppliers of key raw materials used in electric vehicles are also trying to find alternatives to
Lopal, which supplies lithium iron phosphate cathode materials - a crucial component in making the lithium batteries that power EVs - said this week it would look for opportunities to build a second overseas plant to "decrease the tariff's effect on the company as much as possible."
Trump's tariffs are also taking a toll on Chinese companies with U.S. manufacturing capacity.
Tianzhen, which sells flooring products, said that while its planned production capacity for its U.S. factory is 20 million square metres, its raw materials, equipment, and spare parts sourced from other countries will be impacted by the tariffs, according to a report from
On Tuesday,
TARIFFS TOLL
Some Chinese firms have even published hypothetical scenarios to help investors gauge the impact of tariffs.
PXI Auto Components, a Suzhou-based seller of car cooling and heating systems, said in a filing last Thursday that if the company partially bore the cost of Trump's additional tariffs at rates of 5% and 10%, going by last year's total net profit of
"To address risks posed by trade frictions, the company has established manufacturing bases and sales subsidiaries abroad," PXI said, pointing to its wholly-owned subsidiary in
Not all the affected Chinese companies have proposed building factories in the U.S. or other countries as a strategy to deal with Trump's tariffs.
Hosemaker ZYfire said last week it "has responded to the situation by stocking up and negotiating with customers on pricing, so as to reduce to a certain extent the impact of the levies on its major products."
Ningbo Gangzetong, a logistics company based in the port city of
The post was taken down days later by WeChat for violating rules, a platform notice showed, without elaborating.
"In previous rounds of tariff adjustments, our company has absorbed the costs ourselves," Ningbo Gangzetong said in a letter to its customers posted on its official WeChat account.
"However, this time, we are left with no choice but to make necessary adjustments."
(
(Reporting by
(c) Reuters 2025. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Related News
-
China's Huawei develops new AI chip, seeking to match Nvidia, WSJ reports
Reuters - 30 minutes ago
-
China's Huawei develops new AI Chip, seeking to match Nvidia, WSJ reports
Reuters - 9:08 AM ET 4/27/2025
-
China says CK Hutchison's ports deal must not try to avoid antitrust review
Reuters - 7:06 AM ET 4/27/2025
-
China says CK Hutchison's ports deal must not try to avoid antitrust review
Reuters - 7:01 AM ET 4/27/2025
-
From rubber ducks to 401(k)s, Trump voters feel tariff pain but most see long-term gain
Reuters - 6:04 AM ET 4/27/2025
-
Toyota considers investing in potential $42 billion buyout of key supplier
Reuters - 3:07 AM ET 4/27/2025
-
Toyota considers investing in potential $42 billion buyout of key supplier
Reuters - 3:04 AM ET 4/27/2025