Laura Bicker, the China correspondent, is reporting from Jiangsu, China, and Phnom Penh, Cambodia, taking us inside the factories that could potentially be impacted by Trump’s China tariffs. In a factory on China’s eastern coast, the smooth leather of an all-American cowboy boot comes to life with the hiss and puff of compressed air. The assembly line continues with sounds of sewing, stitching, cutting, and soldering echoing off the high ceilings.
A 45-year-old sales manager, Mr. Peng, who chose not to reveal his first name, mentions that they used to sell around a million pairs of boots a year until Donald Trump’s tariffs initiated a trade war between the US and China. Uncertainty looms as businesses in China brace themselves for the potential sequel now that Trump is back in office.
The threat of tariffs has led to major firms considering relocating their production to South East Asia, including Mr. Peng’s boss who owns the factory. However, moving production would mean losing their skilled workforce, many of whom have been with the company for over 20 years. The impact of previous tariffs in 2019 has already led to a decrease in orders and a reduction in staff numbers.
Mr. Peng reflects on the changes in the industry and the challenges they face to stay competitive in the global market. The ongoing tensions between the US and China have led to businesses exploring new manufacturing locations, with some moving their operations to countries like Cambodia to avoid increased costs.
The story of these cowboy boots, once crafted to conquer the Wild West, symbolizes the shift in global trade dynamics and the challenges faced by businesses caught in the crossfire of geopolitical tensions. As Trump’s tariffs continue to shape the landscape of international trade, the future remains uncertain for businesses like Mr. Peng’s factory in China.