China’s Major Ports and Factories Struggle as US Tariff Hike Disrupts Trade
China’s major ports and foreign trade provinces are feeling the initial impact of the escalating tariff conflict with the United States, with trade flows grinding to a halt and factory production slowing down, as reported by Radio Free Asia.
By Thursday, major ports such as Shanghai and Guangdong, once bustling with activity, saw a dramatic drop in shipments to the US. Export factories in key provinces central to China’s export economy have come to a standstill, according to sources within China.
Business owners reported that shipping containers, which missed the April 9 deadline for US-bound shipments, are piling up at the ports in Shanghai and Guangdong. Inside warehouses, goods originally intended for export to the US are left unattended, while factories in Zhejiang and Guangdong—the two provinces contributing the most to China’s exports in 2024—have halted production.
On Wednesday, US President Donald Trump announced an increase in “reciprocal tariffs” on Chinese goods to 125%, with the White House later clarifying that the total tariff would amount to 145%, factoring in a previous 20% tariff on Chinese imports related to fentanyl trade.
This latest round of tariff increases follows a back-and-forth exchange between Washington and Beijing, which began when Trump imposed a 10% tariff on China in February, citing its role in the fentanyl trade, a powerful opioid linked to a significant number of deaths in the US.
Just days before the new tariffs took effect, Shanghai’s Yangshan and Waigaoqiao terminals were packed with activity as ships rushed to load containers and depart before the deadline. Similar scenes are unfolding at the Yantian terminal in Shenzhen, Guangdong, where the effects of the tariffs are being keenly felt, according to Qian, a businessman from Guangdong now in Shanghai.
