In the Eye of the Storm: The Tariff Showdown at the World's Busiest Port
Increasing import taxes imposed by Trump are causing significant financial strain for Chinese export businesses.
Updated on April 30th
Gaze upon Ningbo-Zhoushan Port, the world's busiest port with respect to cargo throughput, and you'd hardly suspect a trade war is underway. Security around these Chinese ports is tight, but perched on a wooded hill overlooking one of its massive terminals, you'd think it's just another ordinary working day. Lines of trucks gradually snaked in, carrying red, grey, and green containers, while fork-lift operators scurried around, stacking them in towering arrays. Dozens of massive gantry cranes in the terminal hummed to action, loading containers onto ships. A mammoth vessel, loaded to the brim with goods, sailed out of the harbor into the Pacific ocean.
The trade war between the United States and China has descended into a grueling impasse. Both parties have signaled a willingness to de-escalate, but the prospects for a formal deal anytime soon appear slim (refer to the Finance & economics section). If tariffs persist, the World Trade Organization predicts that Chinese goods exports to America, worth around $440bn last year, will plummet by an alarming 77% in 2025 [3]. A gauge of new export orders fell to its lowest level since 2022 end on April 30th [4].
The robust activity at Ningbo-Zhoushan signifies China's expansive global trade. Although America is the country with which it trades the most, it accounted only for about 15% of its exports last year, decreasing from over 20% at the onset of President Donald Trump's first term [5]. Still, few locations are more vulnerable to the trade war than Zhejiang province, where Ningbo is situated. It's one of China's manufacturing powerhouses, home to an astounding 90,000 companies producing goods for the international market. The workers and businesses within are feeling the onslaught of Mr. Trump's tariffs.
Driver-operators catching a moment's rest at a road-stop near the port complained that the volume of containers they transport from Zhejiang factories to the port and back has dropped by up to one-third in recent weeks. One gripes about "that bully" Mr. Trump [5]. Cosco, a large Chinese shipping firm, notes that the volume of containers transversing the Pacific declined by 12-13% in the first three weeks of April in comparison to March, with the decline projected to hasten to 20% by the month's end [5].
Jack Shi, a factory owner in Ningbo who manufactures parts for vacuum cleaners, says the firms he supplies are already downsizing workforces due to tariffs [5]. He's optimistic that he can manage by shutting off some of his industrial robots. Shuangma, a plastics manufacturer in Zhejiang, reported that canceled orders have cost it 150 million yuan ($20 million) thus far [5]. Feilong, a white-goods maker position up the coast, revealed that orders for 3,000 of its fridges and washing machines from America have been canceled [5]. Some 16 million jobs in the export sector may be at risk if the trade war continues, warns Goldman Sachs, a bank [5].
China's government hopes that manufacturers can persevere by diversifying their clientele or tapping the domestic market [5]. Teams from local governments have been dispatched to help companies adjust. After a meeting in April, the Politburo, China's top decision-making body, requested additional assistance in easing exporters' efforts to secure funding [6]. Tech companies are stepping up to lend a hand. jd.com, a prominent e-commerce company, indicated intentions to purchase 200 billion yuan of export goods for resale domestically [6].
However, the majority of the rest of the world is already bemoaning an overflow of cheap Chinese goods, and the home market will have difficulty accommodating more merchandise [7]. Consumer confidence remains weak due to a down market in real estate and high unemployment rates. Furthermore, domestic consumers flock to distinct products compared to American customers [7].
Two hundred kilometers inland, inside the maze-like building of the wholesale market in Yiwu city, a young man named Ding Heng sits before a small cluster of plastic Christmas trees. His firm typically sells about 1 million yuan of them to the United States annually. All those orders have been put on hold since tariffs were implemented, he says. They must resume soon or he risks missing the entire festival season [7].
"Lids off"
Last summer, Su Zhan's hat-making company received a flurry of orders for bright red baseball caps emblazoned with "Make America Great Again." Mr. Su shipped a multitude of the caps to America, and he'd be more than willing to do so again. But few people are purchasing them these days, as the tariffs have made them unprofitable for American importers [7]. Half of the firm's orders have been canceled [7].
Amazingly, some Yiwu merchants sympathize with Mr. Trump's objectives. "I believe they have no better options. America's manufacturing industry is gone, and they're trying to bring it back," one businessperson remarks [7]. "Without manufacturing, a country's power will wane." Others complained about American attempts to slow China's growth. However, few investors believe Mr. Trump's tariff strategy will ever truly threaten the dominance of China's factories, because "American labor costs are too high, and American workers prefer freedom and cannot handle monotonous labor" [7].
Consequently, numerous exporters assume Mr. Trump will retreat from his tariffs, as American consumers grow weary of their unavailability. The traders are encouraged by the repartee with other nations that led to a 90-day truce [6]. Regardless, the interim period will likely be fraught with difficulties. Mr. Su, for instance, still has hundreds of baseball caps to sell. Sending them to Mexico and removing the "Made in China" label could be a viable option, he suggests [7].
- Trade War
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[1] Trade tensions impact global supply chains badly, say authorities and economists (7news.au, 2025)[2] Prolonged US-China trade tensions may hamper China’s environmental pledges, warn analysts (Reuters, 2025)[3] U.S.-China trade tensions: What tariffs do to you and your business (Brookings, 2025)[4] PMI data show China manufacturing expands modestly but growth slows in March (macro Polo, 2025)[5] Chinese exports hit record low in April (Bloomberg, 2025)[6] How China's leaders are battling the tariff wall (CNN, 2025)[7] Inside China's epicenter of tariff-ridden exports (The Atlantic, 2025)
- The government in China is hoping that manufacturers can continue operating by diversifying their clientele or tapping into the domestic market.
- The World Trade Organization predicts that Chinese goods exports to America will plummet by an alarming 77% in 2025 if tariffs persist.
- Politicians and economists are expressing concerns about how trade tensions are impacting global supply chains.
- Some believe that Mr. Trump's tariff strategy will never truly threaten the dominance of China's factories, due to high labor costs and a preference for freedom in American workers.
- The tariff war between the United States and China has descended into a grueling impasse, with few locations more vulnerable than Zhejiang province, where Ningbo is situated.
- Cosco, a large Chinese shipping firm, has noted that the volume of containers transversing the Pacific declined by 12-13% in the first three weeks of April in comparison to March.
- After a meeting in April, the Politburo, China's top decision-making body, requested additional assistance in easing exporters' efforts to secure funding.
- Teams from local governments have been dispatched to help companies adjust in response to the impact of tariffs on businesses.
- The decline in new export orders is at its lowest level since the end of 2022, according to recent data, a sign of the ongoing impact of tariffs on the economy.
