Chinese factories are feeling the heat as President Donald Trump’s America First trade policies begin to take a serious toll. With U.S. tariffs hitting Beijing, production lines across China are slowing down, and workers are being sent home as the economic strain deepens. What critics once called reckless is now proving to be a strategic move. For the first time in years, the U.S. is standing up to China’s economic aggression, and the results are beginning to show.
According to reports, several Chinese factories have drastically slowed down production and are sending workers on unpaid leave. With Chinese goods facing U.S. duties of at least 145 percent, American customers are canceling or suspending orders.
The factories affected most are those that produce everything from shoe soles to jeans, electrical outlets, and portable stoves.
Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, which represents over 2,000 Chinese merchants, stated that many factories are now “extremely anxious.” This has led suppliers to pause or delay deliveries, with some even reducing weekend hours and cutting overtime for workers who depend on American orders.
Meanwhile, executives at DeHong Electrical Products in Dongguan, Guangdong province, informed workers that they would be given one month of leave at minimum wage, citing "significant near-term pressure" on the factory after clients suspended their American orders.
DeHong told the Financial Times that its management was actively seeking solutions, exploring new markets, and cutting costs to restore normal operations as quickly as possible.
Chinese factories have long depended on U.S. consumers, and the United States is one of China's largest export markets. Roughly 15 percent of all Chinese exports last year went to the U.S.. In 2023, China exported approximately $436 billion worth of goods to America, making it a critical destination for Chinese-manufactured products.