Trump's 104% China tariff worries Christmas decoration makers, importers

Chinese producers of plastic Christmas trees and other festive decorations said on Wednesday (April 9) that orders from U.S. clients have slowed as both sides are cautious about the risk of rising import tariffs, putting them in a "wait-and-see phase."

U.S. President Donald Trump's "reciprocal" tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods, in an escalating trade war that threatens great pain for the world's largest exporter of manufactured goods.

U.S. retailers are almost completely reliant on China for Christmas decorations, where they source 87% of such goods - worth roughly $4 billion. Chinese factories are also heavily dependent on the U.S. market, where they sell half of what they make.

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In Shaoxing, some 30 kilometers (18 miles) away from China's hub for global small commodities trade, Yiwu, in southeastern Zhejiang province, factory owner Liu Song worried that U.S. orders will be canceled in the future due to the trade war.

While U.S. clients account for only 20% of his exports, he said, ‘We must proceed with caution,' adding, ‘We will definitely win this trade war.'

In Yiwu, Wang Yufen, the sales manager of Zhanbang Christmas Company, said that during the Christmas season, there is usually a small amount of production that can't keep up with demand. This year, their strategy is to forgo U.S. orders.

China announced additional tariff measures on U.S. goods in retaliation against President Donald Trump's tariff policy, imposing an 84% tariff on U.S. goods starting Thursday (April 10), up from the previously announced 34%, according to the finance ministry.

"Prices will definitely double for all of our products, and we don't know if that's sustainable," said Jami Warner, executive director of the American Christmas Tree Association.

"This 104% tariff could be the Grinch that steals Christmas."

(Production: Xiaoyu Yin)