90-Day Tariff Pause Sparks Manufacturing Surge
Chinese factories are accelerating exports to the United States after a 90-day pause in tariffs, which slashed U.S. duties on Chinese goods from 145% to 30%, and China’s tariffs on U.S. goods from 125% to 10%. The short-term reprieve has sparked a scramble among manufacturers to fulfil delayed American orders.
Puzzle and Textile Factories Back Online
In Dongguan, factory owner David Xu resumed production of a $500,000 puzzle order for U.S. clients, including Disney and DC Comics, saying, “We are aiming to get these shipped to the U.S. within 90 days.”
Elsewhere, a Shanghai textile company restarted its production line at 6 am the day after the truce was announced, rushing to fulfil a 300,000-garment order for U.S. retailers.
Cosmetics and Other Sectors Rush to Reconnect
In Shenzhen, a cosmetics exporter worked through the night to meet urgent demand from American clients facing inventory shortages. The sudden change in policy triggered a wave of overnight coordination between suppliers and buyers.
Some Businesses Unable to Recover
Not all manufacturers are benefiting. A historic toy company announced it would shut down operations after losing nearly all its U.S. orders during the trade standoff. Although a small number of orders have returned, they represent just 20% of previous volumes—insufficient to sustain the business.
Factories Eye Relocation Amid Uncertainty
Looking ahead, Xu is among those considering relocating to Southeast Asia to mitigate future risk. “If there are changes after three months, we can avoid some risks,” he said.
Trade Truce Offers Only Temporary Relief
While the pause has brought temporary economic relief, analysts stress that core trade tensions remain unresolved, and the long-term outlook for U.S.–China manufacturing relationships remains highly uncertain.
