Are Trump’s tariffs just punishing China for being good at what it does?

The annual Canton Fair in Guangzhou, China, is the country’s largest import-export trade show, spanning an area equivalent to about 200 football fields. Since its inception in 1957, the fair, formally known as the China Import and Export Fair, has played a crucial role in overcoming trade barriers imposed by the West and attracting business investments from overseas markets.

China has evolved into a global manufacturing powerhouse over the past decades. However, President Xi Jinping’s government is concerned about the escalating trade tensions with the United States, particularly due to President Trump’s tariff policies. Richard Qiu, a businessman at the fair, expressed his frustration with the unfairness of the trade war, which has impacted his gift bag export business significantly.

Qiu, who has cultivated strong relationships with U.S. customers over the years, is now facing cancellations of 90% of his U.S. orders due to the steep tariffs imposed by the Trump administration. The trade war has also led to a noticeable decrease in American buyers at the Canton Fair this year, reflecting the impact of the ongoing trade dispute.

Despite the challenges, some American business owners like Jonathan Scheerz remain hopeful that the tariffs will eventually decrease, allowing for smoother trade relations with China. Scheerz acknowledged China’s unparalleled ability to offer a wide range of products at competitive prices, emphasizing the importance of maintaining trade ties with the country.

For Qiu and many other business owners, the uncertainty of the trade war poses a significant threat to their livelihoods. While Qiu is exploring diversifying his export markets in Europe, the future remains uncertain. He likened the situation to a war, noting that the Chinese people have a history of resilience in the face of adversity.

Ultimately, the trade war has created a sense of unease and instability in the business community at the Canton Fair. As businesses navigate through these challenging times, they are bracing themselves for potential hardships while remaining hopeful for a resolution to the trade dispute. The impact of the trade war extends beyond economic consequences, affecting personal relationships and the overall business landscape at the fair.