Relief Spreads Back to China's Factory Floors as US Tariffs Temporarily Lifted

Vacant Factory Floors Show Trade War Effect

An empty bare room in a large factory in Foshan, southern China, is where workers previously assembled high-end air fryers for dispatch to the US market.

Derek Wang, factory owner, recalls how his groundbreaking air fryers, smartphone-controlled and capable of baking, roasting, and grilling, amazed American consumers. But everything came to a stop on April 2, when former U.S. President Donald Trump slapped Chinese imports with massive tariffs, up to 145%. Orders came to a standstill and production stopped.

I put on a smiling face for the benefit of my 40 staff, but I was anxious inwardly," Wang explained to the BBC.

Ceasefire Brings Hope and Business Resumption

And now, following the unexpected ceasefire brokered after recent Swiss talks, Derek relays US clients are resuming contact and production is restarting—though tariffs continue to reign. Chinese goods still possess a minimum 30% tariff imported into the US, China maintaining a 10% duty on American imports, down from its previous 125%.

This deal has provided much-needed space to breathe to firms and factories stuck between the ongoing trade war.

"Our US customers are willing to absorb the tariffs themselves at this stage," says Wang, "but we needed to lower prices so it was still viable."

Personal Costs and a Changing Business Strategy

Wang, a Delaware engineering student, spent nearly half a million dollars turning his air fryer designs into reality. The tariff shock was "a divorce between China and the US," he recalls, remembering the deep economic and cultural ties between the two nations.

"But since there's a Chinese proverb that goes, 'good fortune comes out of bad fortune,'" he says hopefully.

Indeed, this trade war has forced Wang and other Chinese firms to diversify out of dependence on the US market. Beijing is calling on companies to search for opportunities in Southeast Asia, South America, and Africa.

Strategic Diversification and Long-Term Implications

This diplomatic move is seen by Chinese policymakers as a sign of leverage in negotiations, showing that China has alternative options beyond the US—winking at a future shift towards economic divergence rather than an infinite schism.

Life in Shunde: The Heart of China's Home Appliance Industry

Meanwhile, in Shunde district—"China's home appliance capital"—reality is bleak. Formerly thriving factories are now subdued. Workers spend evenings in local parks, where some shoot hoops, others line dance, as recruitment notices pitch low-earning, temporary factory jobs.

Some of the factories, especially those with US trade connections, have suspended hiring or shut down production lines, and many of the workers are now out of jobs. Most are migrant workers who live meagerly in hostels or, in a few instances, even in parks to save on cost, sending the bulk of their wages back home.

Trump's Vision and China's Resilience

President Trump described the deal as a way of easing China's economic misery, citing factory closings and protests. "They were very happy to be able to do something with us," he stated.

China's economic distress is even overstated. The country remains a world leader in producing electric vehicles and solar panels, and it's making huge strides in artificial intelligence.

Chinese officials emphasize their capacity to ride out this economic showdown but concede pressure on the streets. That probably pushed Beijing to the bargaining table—and Derek Wang's factories to hope again.