The Chinese government has implemented retaliatory measures against equivalent US tariffs, facing tariffs as high as 145%, resulting in a significant blow to export trade. The volume of shipments from China to the US has drastically decreased, posing challenges for a large number of truck drivers working in port logistics, further exacerbating their livelihoods.
According to statistics from Huatai Futures, there will be a significant reduction in sea freight services between China and the US. From April 14 to May 11, 26 sailings from China to the US East and West coasts have been canceled, with container capacity decreasing by nearly 40%.
On April 23, Chen Ming (pseudonym), who has been engaged in automobile freight at the Shenzhen Yantian Port for seven to eight years, told Epoch Times that this year has been particularly difficult. “The US is our largest foreign trading partner, but with such high tariffs, it’s impossible to continue.”
He mentioned that the bustling Yantian Port, which used to see busy traffic, has now seen a reduction of about 70-80% in container shipments to the US compared to the same period last year. Many cargo trucks are parked on land waiting for work, and even those seemingly transporting goods are actually carrying goods to be returned to the factory after customs clearance. This situation has persisted since March and has become even more pessimistic in April.
Chen Ming expressed, “There’s not much to do now. This is how foreign trade goes. The US no longer imports our goods due to the excessive tariffs. If something originally sold for ten dollars now has over 100% tariff added, it will be sold for over twenty dollars. Because the profit margin is already high, paying too much in tariffs leaves no one willing to buy.”
“There are not many orders from the US anymore because the things we produce here have little technological content, and many have shifted production to countries like Vietnam, India, and Mexico,” Chen Ming added.
A Guangdong-based export clothing trading company has suffered heavy losses. The owner mentioned in a video that the tariff war has become very obvious, causing significant damage to the textile and apparel industry.
The owner stated that China is the world’s largest textile manufacturer, with one-third of its products exported to the US, and another one-third entering the US through some Southeast Asian countries. This means that 60% of China’s textile exports are related to the US. Therefore, these tariffs are a significant blow to clothing manufacturing export enterprises. Twenty containers from his factory are stranded in Shenzhen Port, while over ten others have been dragged back to the industrial base, with another ten containers being redirected for domestic sales at the port.
Chen Ming explained that with containers unable to leave, some companies have pulled goods back to the factory, some have resorted to selling goods without packaging, and others are simply waiting, not loading onto ships or leaving, hoping for a potential resolution before exporting.
Chen Ming told Epoch Times that livelihoods this year are noticeably worse than in previous years. The impact of the tariff war on foreign trade is significant, affecting not only foreign trade but also the economy. Due to the reduced number of containers exported to the US, the livelihoods of transportation drivers have also been jeopardized.
He said, “Transportation drivers rely on strenuous work to earn money. In better times, one could earn more than ten thousand yuan a month. Now there’s no work, and life is tough. Everything is expensive – rent, meals. When people can’t make money, who would be willing to consume? Every industry is struggling.”
Chen Ming hopes that in May, China and the US can reach an agreement. “If an agreement is reached, even though we won’t make a fortune in this business, we can still make ends meet and support our families.”