Trump tariffs hit northeast China's ceramic manufacturers

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Europe

The United States has imposed tariffs on roughly half of all Chinese goods entering the country starting this week. CGTN re-visited one ceramic manufacturer in China's northeastern Liaoning Province, who survived the previous round of tariffs but will get hit this time.

It's news that ceramics business owner Lin Mao hoped he would never hear. His company will face additional taxes on its exports to the US.

Ceramics business owner Lin Mao /CGTN Photo

“It's 10 percent... and there is no way around it. But surprisingly our sales volume in the US hasn't been affected so far. In the end, it's our US customers who will foot the extra tax bill,” said Lin Mao.

Earlier this year, Lin's company secured a US order worth 15 million US dollars. Chinese-made ceramics survived the previous round of tariffs, but not this time. In response, Lin is rolling out new products for the European markets.

Lin told CGTN that he still can't figure out the intention behind the US' new tariffs. He said: "On paper, it looks like Chinese products are being slapped, but the supply chain today is spread across the world: Our designers are from Italy, some of our materials are from Southeast Asia, our equipment is purchased from Spain. So reluctantly, these countries are now involved."

Lin Mao shows products to CGTN reporter. /CGTN Photo

China's Ministry of Commerce said in a statement that Beijing is being forced to hit back to “safeguard its own interests and the world's free trade order." For manufacturers like Lin, he has other issues to deal with.

"Comparing with the pressures brought by the tariffs, I think the issues at home are more pressing: The rising labor costs, the stricter environmental rules, the economic slowdown where we are, these are the common concerns among the small and medium-sized enterprises today," said Lin.

The previous round of tariffs in July primarily targeted goods that businesses purchase, but the tariffs list this round is bound to push up prices at many American retailers that import Chinese products, just like Lin's ceramic tiles.