At the bustling Canton Fair in Guangzhou, China’s largest trade exhibition, concern ripples through the thousands of exporters facing a sharp slowdown in U.S. orders. The downturn follows a steep rise in tariffs by the United States, with Chinese firms warning of a potentially devastating impact on their businesses.
Conmo Electronic Co., a producer of medical devices, is one such firm grappling with the fallout. “It’s a matter of life and death,” said Candice Li, the company’s marketing manager. With 60 to 70 percent of their business dependent on U.S. buyers, Li explained that orders have dried up, leaving goods stranded and payments stalled.
This edition of the Canton Fair, which spans an area larger than 200 football fields and runs from April 15 to May 5, is the first to take place since former U.S. President Donald Trump imposed tariffs exceeding 100% on Chinese products earlier this month. The broader global tariff hike, with at least 10% levied on other countries, is also expected to dampen demand beyond the U.S.
Despite a significant presence at previous fairs, the number of U.S. and European buyers has halved this time—dropping from about 20% to just 10% of the total 170,000 overseas registrants.
Some firms are adjusting by seeking alternative markets. David Du of Zealot, a speaker manufacturer, noted that an order from Skechers USA was suspended due to tariff complications. However, Zealot has built a strong foothold in Nigeria, where their multifunctional speaker found unexpected success, now accounting for 40% of the company's sales.
Others are attempting to diversify production. Henry Han, sales manager at Apexto Electronics, said his company had considered moving manufacturing to Vietnam or the Philippines. But recent U.S. tariff announcements targeting those countries have put such plans on hold.
Even with creative solutions, many exporters are in limbo. Kobe Huang from Shenzhen Landun Environmental Technology said European orders are holding for now, but U.S. clients have asked to delay shipments. "We are holding on," he said.
U.S. buyers also seem uncertain. Levy Spence, an importer attending the fair, said shifting tariffs have complicated purchasing decisions. “Every day I wake up, I feel like it’s a different tariff,” he remarked, noting the global ripple effect on raw materials and pricing.
For firms like Conmo, the stakes are rising fast. Li fears that without a resolution, her company may have to reduce work hours or even cut staff. “If neither side gives in, it’s ordinary people who will suffer,” she warned. “How will their salaries be paid?”
