Trade tensions between the United States and China continue to intensify. For this reason, the current global scene is forcing many companies to urgently reconsider their sourcing and manufacturing approach. With U.S. tariffs on Chinese goods skyrocketing, companies have been looking to new markets in order to keep their supply chains moving. That’s an important change, with major ramifications for the Chinese economy and for global trade patterns.
Bright Tordzroh, CEO of Cotrie Logistics, believes this is a unique moment of opportunity. Founded in the throes of the Covid-19 pandemic, Cotrie Logistics has established its position as a leader in importing goods from China to Ghana. Scopelities has developed to help companies find alternative sources of supply and help plan for shipments with continuing congestions through ports. Tordzroh hopes that the current challenges will lead to new opportunities for Cotrie, allowing it to build its services and eventually incubate other nonprofit tech solutions.
From its launch in 2020, Cotrie Logistics has more than tripled its annual revenue, ranging from $300,000 to $1 million per year. The firm’s focus on the trade relationship between China and Ghana has positioned it well as companies seek alternative routes for their products.
Ash Monga, founder and CEO of Imex Sourcing Services, expressed his passionate plight on the recent doubling of tariffs on Chinese products. In fact, he thinks the impact of these tariffs is “way bigger” than the havoc created by the unprecedented Covid-19 pandemic. This feeling echoes throughout the public, private and nonprofit sectors. It is well known that businesses are suffering from the costly impact of U.S. inbound imports from China increasing significantly.
Michael Hart, president of the American Chamber of Commerce in China, reported that some businesses have found their models unviable under current tariff conditions. He noted that companies have communicated that “under 125% tariffs, their business model is not workable.” This gripping truth embodies the struggle many firms do battle with as they try to find their way through the ever-growing maze of international trade.
The effects go beyond the companies directly involved. It punishes millions of Chinese workers as well. Goldman Sachs estimates that between 10 million and 20 million workers depend on businesses that export U.S.-bound goods. Yet as orders from American customers dry up, their job security—and that of the tens of thousands of workers like them—lies in limbo.
Chinese manufacturers are responding by looking for other markets. Woodswool, an athleticwear manufacturer based in Ningbo, has taken a courageous step. Now, they’re turning their attention to selling clothes directly on social media and e-commerce platforms in China. The brand swiftly adopted the new sales tactic of livestreaming to connect with consumers on a deeper level during this difficult time.
This cancellation is an unfortunate illustration of the swift effect tariff hikes can have on manufacturing plants. In response to lost orders from the United States, Woodswool has turned to Baidu’s e-commerce platform for sales, which now incorporates a livestreaming feature to engage consumers directly.
“All our U.S. orders have been canceled.”
A second case of creative adaptation comes from Liu Xu’s e-commerce firm, Beijing Mingyuchu. The firm has recently made successful inroads on exporting bathroom products to Brazil. From 2018 to 2024, China’s exports to Brazil increased twofold. This shift towards diversification is part of a larger trend among Chinese companies looking for stability during uncertain days.
Ashley Dudarenok, founder of ChoZan, a China marketing consultancy, has observed some paradigm-shifting trends. Now, Chinese consumers are getting more and more tired of being shamed into buying domestic products on social media sites. This marked change in consumer sentiment will put further pressure on domestic sales, as manufacturers increasingly deal with foreign brands gaining market share.
Cameron Johnson, a senior partner at consulting firm Tidalwave Solutions in Shanghai, emphasized the plight of small businesses amidst rising tariffs. He noted that for smaller firms with limited resources, often only several million dollars, the sudden increase in tariffs might be unbearable and could ultimately lead them out of business.
As businesses are still learning to navigate these adverse circumstances, it is too early to determine the long-term impact of U.S.-China trade tensions. The opportunity to change how companies source materials and products could dramatically alter international trade relationships and U.S. consumers.
As companies continue to adapt to these challenging conditions, the long-term effects of U.S.-China trade tensions remain uncertain. The potential for changes in sourcing strategies could reshape international trade patterns and consumer behavior.