China has announced 10% tariffs on US imports, effective 10 February, in response to President Donald Trump's tariffs on Chinese goods. The countermeasures follow the US administration's recent proposal of 25% tariffs on Canada and Mexico, which have been temporarily delayed.
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China's Ministry of Finance criticised the US decision as a "unilateral tariff hike" that "violates World Trade Organization rules" and "disrupts normal economic and trade cooperation." The new tariffs will affect crude oil, agricultural machinery, large-displacement vehicles, and pick-up trucks.
In the home furnishings industry, US imports from China have been declining, with many manufacturers shifting production to Vietnam, Malaysia, India, and Mexico. Despite this, China remains a key player in furniture exports.
Manwah, a major upholstery manufacturer with operations in China, Vietnam, Mexico, and Eastern Europe, addressed concerns over the tariffs. President Gabriele Natale stated that the company has strategies in place to support retailers and advised against "kneejerk moves."
Natale explained that all Manwah products for North America are produced in Vietnam, while its Mexican factory serves Mexico and Canada. He noted that shifting production to new, tariff-free locations may seem ideal "on paper," but such moves carry risks, as countries like Mexico "do not scale easy nor fast."
He warned that retailers must consider potential supply shortages and disruptions, saying, 'Ultimately being out of stock hurts a retailer more than a 10% price hike.' He added that businesses are currently evaluating the impact and will 'formulate a game plan in the next few weeks.'
Source: www.designerstoday.com