The boxes of clothing factories in a manufacturing center in southern China, known as “Shein Village”, have been inactive in the last week as a result of the Trump’s administrations move to impose rates And the so -called “minimis” exemption that allowed retail and tax -free products for Americans.
The location of the companies in the Panyu district of Guangzhou, the home of workshops that are ever stopping that they supply the Fast Fashion Giant, have been silent, while the piles of unrew garments are stacked inside, according to the workers.
Until recently, these products were frequently addressed directly to US consumers who bought them at a fraction of the cost of clothing that are sold by retail retail in the United States. Thanks to a tax exemption for international shipments Valued at $ 800 or less.
“Shein’s orders have fallen this year, and our sales have dropped a lot”, a worker in a workshop that uses about 20 people He told the Nikkei Japanese news agency.
The elimination of Trump of the Minimis policy, which enters into force on May 2, means that all shipments or size now face import taxes.
The policy had allowed online retailers like Shein and Temu to keep competitive prices in the US market, without founding their business model.
The change exerts additional pressure on China’s already fighter economy, which has been taken care of by problems, the broadest in its real estate tissue sector.
Economic growth remained stagnant at 5.4% in the first quarter of this year, without showing an improvement of the previous quarter.
“The workshops have closed everywhere in just two months,” Liiaghua, owner of a business originally from Hunan’s province, told Nikkei.
In the light of the Burgeon War, Shein has encouraged her suppliers to relocate operations in Vietnam as part of a strategy to mitigate the impact of Trump’s policies.
However, narrower suppliers without the financial capacity to relocate have adjusted completely.
Li himself has stopped accepting Shein’s orders, changing his sales strategy towards direct marketing on social media platforms.
The situation is similar in Dongguan, a city of manufacturing east of Guangzhou, where factories that supply articles and leather bags to the US companions. UU. They had already experienced businesses even before the recent Trump tariff decisions.
A factory in Dongguan lost contracts worth $ 150,000 annually of four important American clients by the end of 2024.
“We have no prospects of winning new US contracts, so we have to give up,” said Liu Xiaodong, who recently touched the factory.
“There are only risks to do business with the USA. Now.”
Despite the thesis setbacks, Liu’s business remains viable, generating around $ 3.4 million in annual sales, mainly from Asian markets.
Liu indicated plans to further increase businesses within Asia, highlighting the fastest and faster and affordable shipping in nearby markets such as Japan and Singapore.
Although Chinese exports to the United States increased approximately 9% in March when companies hurried shipments ahead of new rates, industry experts predict a significant recession from this month, when total rates of 145% in the Chinese enter action.
Deflaconacionistas trends within China could cheat through other markets as Chinese manufacturers look for new customers outside the United States, intense competition and power that trigger generalized price reductions.
“The price competition in exports to Asia will intensify,” warned a Chinese manufacturing executive, pointing out challenging times ahead for global commercial dynamics.
