Yiwu responds to U.S. tariff hikes with resilience, confidence

From announcing the so-called "reciprocal tariffs" on April 2 to admitting that its high tariffs on Chinese goods are excessive and unsustainable, the tariff drama initiated by the U.S. has now dragged on for a month.

Home to over 70,000 merchants, the Yiwu International Trade Market, nicknamed the "world's supermarket," is a bustling hub of global trade in east China's Zhejiang Province. Over 3,000 companies are engaged in trade with the U.S., with varying degrees of dependence. Now, a month into the ongoing U.S. tariff hikes, how is this global marketplace weathering the storm? With the Christmas goods procurement season in full swing, People's Daily Online traveled to Yiwu to find out.

"Orders from the U.S. make up only about 3 percent of our total orders, so they've had almost no impact," said Jiang Jiangping, who runs a Christmas costume shop with his wife. Their primary market is Europe, and production is already booked through the end of July. During the reporter's visit, two groups of buyers visited the store within an hour, one of them a first-time customer from Italy.

For Wang Xiaoli, who specializes in Christmas decorations, the impact has been significant. "April is the peak season for Christmas orders. Since the U.S. tariffs on Chinese goods jumped to 145 percent, nearly half of our orders have been affected," she said. Whether goods can be shipped from Yiwu by the end of May will directly determine if U.S. store shelves are stocked in time for the winter season.

"If the tariff hikes drag on, U.S. consumers may end up paying much more for Christmas goods, or not be able to buy them at all," she noted.

Despite heavy reliance on the U.S. market, Wang remains unfazed. Fewer U.S. orders simply mean less overtime. In recent years, her company has steadily grown its presence in South America and Europe. Now, she has more time to refine products and improve quality to better serve global clients.

Argentine buyer Ariel Maldjian confirmed this. "There's not much time left to source Christmas goods. Five minutes ago, we were talking about this booth, how to buy, because it's (almost) time to buy for Christmas," he said. Yiwu's appeal lies not only in its wide variety of products, but also in their quality, according to Maldjian.

People's Daily Online found that, in the face of unreasonable tariffs, Yiwu businesses are actively expanding into new markets while boosting their competitiveness through proactive planning, innovation, and lengthening their supply chains.

Lyu Xulian, who operates a 3D-printed toy shop, said his company has been prioritizing research and development (R&D) and production of printing materials from the outset, giving them a competitive edge in both color and quality.

During the tariff hikes, many U.S. buyers hesitated for a week, but returned when they couldn't find suppliers offering similar value. Some even proposed ways to offset the extra costs through negotiation, Lyu said.

Lyu said the company's overall business growth has far outpaced that of the U.S. market, with the share of business from the U.S. dropping from around 80 percent to about 30 percent. This has greatly mitigated the impact of the tariffs.

"We used to run 1,000 to 2,000 machines, and now we have 5,000 to 6,000, and the extra output is sold to other countries," she said.

Yiwu's merchants aren't the only ones adapting; local policies are also lending support. On April 29, Yiwu rolled out 10 new measures to promote high-quality growth of the private economy. These include support for tech innovation, smart upgrades, and talent development. The city also announced that it will allocate 100 million yuan (about $13.82 million) in special funds to help over 3,000 U.S.-focused merchants expand overseas and win new orders.

With vast market potential, a robust industrial chain, and timely policy support, Yiwu entrepreneurs are confident in their ability to take bold risks and foster innovation. Amid global uncertainty, this foreign trade hub continues to demonstrate resilience. Through every negotiation and signed contract, the city remains open for business, linking over 230 countries and regions with more than 2.1 million Chinese manufacturers.

Just like today's China, which chooses to extend hands rather than clench fists, to tear down walls rather than build them, and to stay connected rather than decouple, Yiwu continues to grow through openness, benefiting the world through openness. The next "China" is still China.