Buyers purchase sports goods at Yiwu International Trade Market in Jinhua, Zhejiang province. [Photo/Tide News]
The United States agreed to remove 91 percentage points in the additional tariffs it had imposed on China, according to a joint statement issued by both governments in Geneva, Switzerland, on May 12.
This has reignited a surge in trade activity in Yiwu, China's small commodity hub in Jinhua, Zhejiang province. Factories and traders, once halted by trade tensions, are now scrambling to meet revived US orders.
Wen Congjian, general manager of Yiwu Danas Import and Export Co, was soon inundated with calls from US clients on the evening of May 12.
The company specializes in soccer jerseys, shorts, and socks, and the 20 percent of its sales coming from the US mostly evaporated under prior tariff hikes. "Stalled orders immediately resumed after the announcement," Wen said.
At Yiwu International Trade Market, a sports goods trader with over a decade of experience said, "Fifty percent of our orders are from Europe and North America. The orders related to the US greatly dropped in those days." With the tariff reversal, the production will commence immediately after receiving a 30 percent deposit from US clients.
The 2026 FIFA World Cup will be jointly hosted by Canada, Mexico, and the US. Wen, a veteran trader of four World Cup cycles, said that the related orders will obviously increase since May.
He highlighted the products of his company boast competitive pricing advantages over US products. "US-made products are pricier than ours after tariffs. Even if we raise prices, clients stick with us."
Anticipating World Cup-driven demand, his team is designing jerseys for the host and popular teams. "I believe next year's World Cup will once again feature a 'team' from Yiwu," Wen said with confidence.
