Berliner Boersenzeitung - In China's factory heartland, warehouses weather Trump tariffs

EUR -
AED 4.244436
AFN 73.389503
ALL 96.041475
AMD 437.227891
ANG 2.068863
AOA 1059.809568
ARS 1591.117901
AUD 1.663809
AWG 2.082925
AZN 1.95873
BAM 1.954592
BBD 2.335977
BDT 142.332035
BGN 1.975509
BHD 0.436313
BIF 3444.885879
BMD 1.155736
BND 1.48259
BOB 8.014012
BRL 6.040997
BSD 1.159793
BTN 109.092106
BWP 15.805369
BYN 3.437405
BYR 22652.420245
BZD 2.332679
CAD 1.597868
CDF 2635.077814
CHF 0.915938
CLF 0.026863
CLP 1060.688624
CNY 7.976305
CNH 7.983216
COP 4277.782432
CRC 539.269051
CUC 1.155736
CUP 30.626997
CVE 110.196419
CZK 24.476637
DJF 206.535037
DKK 7.471618
DOP 69.927086
DZD 153.324525
EGP 60.76882
ERN 17.336036
ETB 181.097361
FJD 2.598383
FKP 0.863596
GBP 0.865357
GEL 3.1147
GGP 0.863596
GHS 12.680109
GIP 0.863596
GMD 84.943654
GNF 10165.761288
GTQ 8.876476
GYD 242.648987
HKD 9.035831
HNL 30.712152
HRK 7.532279
HTG 152.086665
HUF 387.510676
IDR 19534.245254
ILS 3.607282
IMP 0.863596
INR 108.781896
IQD 1519.467505
IRR 1517654.369857
ISK 143.206866
JEP 0.863596
JMD 182.687885
JOD 0.819347
JPY 184.298222
KES 149.910497
KGS 101.068161
KHR 4651.145599
KMF 493.499383
KPW 1040.178735
KRW 1741.537699
KWD 0.354915
KYD 0.966507
KZT 559.596576
LAK 25005.762183
LBP 103706.496104
LKR 364.767721
LRD 212.827547
LSL 19.536695
LTL 3.412587
LVL 0.699093
LYD 7.395525
MAD 10.808973
MDL 20.279642
MGA 4834.054262
MKD 61.622775
MMK 2427.238714
MNT 4125.361797
MOP 9.339568
MRU 46.21164
MUR 53.891528
MVR 17.856098
MWK 2011.174446
MXN 20.55545
MYR 4.617149
MZN 73.903122
NAD 19.53661
NGN 1599.98893
NIO 42.683805
NOK 11.207202
NPR 174.54888
NZD 1.9938
OMR 0.444374
PAB 1.159783
PEN 4.010639
PGK 5.010925
PHP 69.637122
PKR 323.708741
PLN 4.281654
PYG 7546.401433
QAR 4.229668
RON 5.094603
RSD 117.440085
RUB 93.618694
RWF 1693.560664
SAR 4.335627
SBD 9.29447
SCR 16.592438
SDG 694.597244
SEK 10.810885
SGD 1.482844
SHP 0.867101
SLE 28.373451
SLL 24235.212834
SOS 662.793245
SRD 43.155748
STD 23921.396123
STN 24.484974
SVC 10.148772
SYP 128.226865
SZL 19.547089
THB 37.968233
TJS 11.105189
TMT 4.045075
TND 3.403382
TOP 2.782734
TRY 51.276297
TTD 7.88616
TWD 36.924603
TZS 2976.087716
UAH 50.922669
UGX 4291.329287
USD 1.155736
UYU 46.95078
UZS 14145.319039
VES 534.054338
VND 30438.611836
VUV 138.119748
WST 3.164637
XAF 655.554687
XAG 0.016593
XAU 0.00026
XCD 3.123433
XCG 2.090317
XDR 0.815303
XOF 655.560356
XPF 119.331742
YER 275.815943
ZAR 19.686745
ZMK 10403.013897
ZMW 21.717766
ZWL 372.146432
  • RBGPF

    -13.5000

    69

    -19.57%

  • RYCEF

    0.3700

    16.06

    +2.3%

  • CMSC

    0.0400

    22.91

    +0.17%

  • RIO

    0.7700

    87.54

    +0.88%

  • BTI

    0.6900

    58.45

    +1.18%

  • GSK

    1.7500

    54.7

    +3.2%

  • BCE

    -0.3400

    25.49

    -1.33%

  • CMSD

    0.0500

    22.68

    +0.22%

  • NGG

    1.9600

    84.29

    +2.33%

  • BCC

    1.0800

    74.65

    +1.45%

  • RELX

    0.0100

    32.47

    +0.03%

  • VOD

    0.0600

    14.72

    +0.41%

  • AZN

    1.3600

    187.14

    +0.73%

  • BP

    0.6200

    45.41

    +1.37%

  • JRI

    0.2400

    12.1

    +1.98%

In China's factory heartland, warehouses weather Trump tariffs
In China's factory heartland, warehouses weather Trump tariffs / Photo: ADEK BERRY - AFP

In China's factory heartland, warehouses weather Trump tariffs

Labourer Shuai Hang went a week without work earlier this year when sky-high US tariffs on Chinese goods overwhelmed the warehouse he works at and slowed the company's US-bound parcels to a trickle.

Text size:

But on Tuesday, after US President Donald Trump announced a truce on those duties would be extended, the depot in southern China's manufacturing hub Guangzhou was alive with noise as workers stuffed trucks with packages of clothes and kitchenware.

Many are destined for the doorsteps of US customers of Chinese-founded online shopping giant Temu.

"Tariffs impact our daily lives," said 31-year-old Shuai, whose monthly pay of more than 10,000 yuan ($1,400) had dropped by a third previously.

"If tariffs are slightly lower, then there are more outgoing shipments, and then we have higher wages," he said.

Trump's tariff policies since taking office have upended global trade and set off a blistering tit-for-tat with Beijing -- but in May the two major economies agreed to a fragile truce, with each temporarily lowering levies on the other's goods.

That agreement was extended to November by Trump on Monday, hours before it expired.

At the height of the tariffs, said Shuai, who has been loading parcels for Guangzhou-based logistics company Weijiang International for a year, "there was not a single truck" for him to fill, so he couldn't work.

Overall deliveries dropped by about 20 percent in May, according to Weijiang's founder Xiong Wei, with the US market making up around a quarter of their cross-border business.

But business has recovered since July, he said.

Xiong said he hadn't lost sleep over the looming expiration of the 90-day tariff truce this week, as he had expected it would be renewed.

"We might have been worried in May, but now we are indifferent," said Xiong. "We are used to it".

- 'Cards reshuffled' -

These days the warehouse is sending out 100 tonnes of packages every 24 hours, with up to 70 trucks making trips.

On Tuesday industrial fans whirred as sweat-slicked workers methodically scanned yellow, black and sage green bundles into lorries.

Xiong's company has recently invested in its own warehouse in Chicago.

In many ways the uncertainty provided opportunity for smaller logistics companies like theirs, said manager Chen Weiyan, as they have taken the chance to expand their market.

"The cards have been reshuffled," he said.

Around 30 percent of the parcels moved by Weijiang International end up in a different warehouse, this one owned by Temu-parent PDD, where they are unloaded, repacked and readied for a flight across the ocean.

While the truce is welcome, Shuai, who packs three to four tonnes in a truck daily, said he still pays close attention to tariff news.

"For those of us who have travelled over 1,000 kilometres to work here, we definitely don't want frequent breaks. We all want to earn more money," said the native of neighbouring Guizhou province.

Working at the warehouse was less tiring than labouring at a construction site, and earning money had become more difficult in the past two years, he said.

Chen, the manager, was bullish.

"We will not give up this market," he said. "Folks in America need our goods".

(T.Burkhard--BBZ)