Trump's Tariffs Cause Uncertainty for Global Businesses

Vietnamese factory workers and executives are living in uncertainty as they await the potential reinstatement of a 46% tariff on imports from Vietnam by the US, announced by President Trump. The country has become a manufacturing powerhouse driven largely by US demand, which fueled over a quarter of its growth last year. Factories in Vietnam, particularly in the textile and garment industry, have thin profit margins and are already feeling the effects of the proposed tariff, with some canceling orders, cutting jobs, or freezing hiring. Vietnamese companies are trying to adapt by exploring other markets and negotiating with US customers, but a final tariff above 20% is expected to significantly impact their profits. The uncertainty surrounding the tariff is causing concern among factory owners and workers, with some worrying that it could lead to layoffs and decreased production.

President Trump's tariffs are impacting Chinese businesses, such as Liaoning Perfect Import/Export Co. Ltd, which has seen 90% of its U.S. orders canceled due to the 145% tariffs imposed on Chinese imports. The company's owner, Richard Qiu, believes the tariffs are punishing China for being efficient and competitive in producing everyday products at affordable prices. Qiu has fostered strong relationships with U.S. customers, who previously made up 30-40% of his exports, but now he is looking to diversify his export portfolio in Europe. The Canton Fair, China's largest import-export trade show, has seen a decline in American buyers, with officials admitting that numbers are "way down." Some American business owners, like Jonathan Scheerz, are researching new products from China in anticipation of tariffs being lifted, as they believe China's manufacturing prowess is unmatched. Chinese business owners are prepared to take the pain if the trade war drags on, with Qiu stating that the Chinese people have the strength to endure hardship.

The US-China trade war is causing job uncertainty for employees in mainland China's cross-border businesses, particularly those reliant on the American market. Companies are restructuring and threatening lay-offs in response to escalated tariffs, leaving employees like Doris Zhang and Anna Yang facing uncertain futures and potential job losses.