What is happening: Manufacturers in China are starting to feel the effects of the most recent Trump tariffs.
Why is this happening: The most recent tariffs, coming into effect in January, cover over $200 billion worth of Chinese goods. The tax on these goods will rise from 10% to 25% in the new year. There could be more tariffs on Chinese goods to come in the future too.
US retailers: Retailers in America are responding to this increase in price by cutting down on orders from China, switching their product mix, and haggling over prices. Some are now avoiding certain private-label products as they see them as unprofitable.
China: Chinese manufacturers are desperately looking to line up some new customers outside of the US to keep orders up. This is delaying new product launches and plans too.