Trump's "Made in America Dream" too naive? Importers shout doomsday: it's impossible to move production lines back, a surge in order cancellations.

The tariff war between China and the United States can be said to be a "spiral escalation"! Although Trump claims that tariffs will fight for fairness in international trade and make the United States great again, according to CNBC, for most companies in the US economy, especially small and medium-sized enterprises, the damage caused by the current 145% Chinese import tariffs may soon become irreversible. (Synopsis: Apple breathes a sigh of relief!) Trump announced: mobile phones, computers and other electronic products are exempted from tariffs, iPhone does not rise? (Background added: "Car dealers call me willing to pay a higher price to buy back", Trump's tariff war has set off a miracle of buying used cars in the United States) The tariff war between China and the United States shows no signs of easing, and the two sides do not want each other to continue to increase tariff rates. At present, the US tariffs on China have reached 145%, and China's retaliatory tariffs against the United States have also been raised to 125%, and it claims that it will continue to take measures to counter Trump's policies. This is despite the Trump administration's announcement over the weekend that it would exclude a wide range of consumer electronics, such as Apple's iPhone, from the 125 percent tariffs imposed on China and the 10 percent global base tariffs imposed on almost every other country. However, foreign media pointed out that this tariff exemption is likely to be temporary, and these goods will soon be subject to other tariffs in the future, although it should not be higher than the 145% that mainland China faces now. But for most companies in the U.S. economy, especially small and medium-sized businesses, the damage from tariffs on Chinese imports of up to 145% may soon become irreversible. Macquarie Investment Bank reports that 97% of strollers, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children's colouring books and 90% of combs imported from the United States come from China.... Supply chain disruptions and order cancellations CNBC reported that as tariffs hit like Mount Tai, companies in all walks of life in the United States have slammed the brakes - canceling freight orders and putting goods from China on hold has quickly become the new normal under the US-China trade war. "U.S. importer orders from furniture manufacturers in China have completely stopped, and we're hearing the same in industries like toys, apparel, footwear and sports equipment," said Alan Murphy, founder and CEO of Sea-Intelligence. Brian Bourke, Chief Commercial Officer at SEKO Logistics, added: "Southeast Asia has faced a similar situation before, but orders in these regions have restarted after the 90-day tariff exemption, while container order cancellations from China continue." Alan Baer, CEO of OL USA, also bluntly said: "Almost all China-related businesses are at a standstill." Separately, Erica York, vice president of the Tax Foundation's Center for Federal Tax Policy, warned: "Trump's imposition of tariffs totaling 145% on Chinese imports will suspend most of the trade between the United States and China." "There may still be some goods for which there are no substitutes, and companies will have to bite the bullet and pay tariffs, but the vast majority of trade will be cut off as a result," she explained. Against this backdrop, Stephen Lamar, CEO of the American Apparel and Footwear Association (AAFA), said sudden policy changes and high tariffs are disrupting supply chains to an unprecedented extent, comparable to the pandemic era. "Faced with prohibitively high tariff levels, many companies have no choice but to cancel orders," he noted. Policy volatility means that the cost of new tariffs is difficult to accurately predict until goods arrive at the port, and the bills generated by high tax rates are unaffordable, which is not a risk or burden that SMEs can afford. For now, all companies can do is to find ways to mitigate tariff shocks. For example, logistics providers offer bonded warehousing services that allow goods to enter the U.S. for a period of time without paying customs duties. Karsten Kildahl, chief commercial officer of global shipping giant A.P. Moller-Maersk, described this, "The current situation is unprecedented." As for abandoned goods (goods that have not been withdrawn or paid freight or duties), the treatment varies slightly depending on the port and contract. Generally, shipments that are past a certain period (e.g. 30 days in New York Harbor) are considered abandoned and sold or auctioned to cover costs such as detention fees. As a result, abandoned markets have emerged, with specialized companies acquiring these goods and reselling them to discount stores, clearances or online sellers. iPhone back to the US? The recent community discussion is that if the iPhone can be manufactured in the United States, Trump will boast for a lifetime, and it will also be a major victory for his commitment to "manufacturing back to the United States". However, the reality is far more complicated than imagined, and moving the iPhone production line back to the United States can be said to be difficult. (Unless consumers are willing to pay several times the price...) First, the United States lacks sufficient production facilities and skilled labor, and labor wages are much higher. What's more, the U.S. lacks a vast supply chain ecosystem currently concentrated in Asia, particularly China, including suppliers, manufacturing technology, and engineering talent. Apple CEO Tim Cook pointed out as early as 2017 that Apple's dependence on China is not because of cheap labor, but because of its large pool of technical talent. Apple's supply chain in China can employ hundreds of thousands of people, and its manufacturing base is like a small town, with hundreds of thousands of residents, schools, gymnasiums, medical facilities and dormitories, such as the "iPhone City" established by Foxconn in Zhengzhou at its peak. It is almost impossible to replicate this scale in the United States. Matthew Moore, a former Apple manufacturing engineer, pointed out: "Which city in the United States will drop everything and focus on making iPhones?" Others believe Apple could use its vast cash reserves to build a fully automated robot factory in the United States. However, supply chain experts say this is impractical. Because even in China, where automation costs are low, it has not yet been fully realized. This is not only because the iPhone development speed is fast and the process changes frequently, which makes automation difficult, but more importantly, many of the production equipment itself is made in China. Of course, the author believes that Trump is not a fool, and this series of measures may only be to gain bargaining chips, after all, he knows that many countries around the world rely on the strong domestic consumption power of the United States, and whether his repeated changes in position in the future can make these small and medium-sized enterprises see a turnaround, it will take more time to observe. Related reports Taiwan stocks don't laugh! Trump warns semiconductor tariffs are coming: Monday's answer China bails out the market! Limited to "daily net selling" of stocks up to 50 million, Beijing raises tariffs on the United States to 125% As soon as the European Union approved a 25% retaliatory tariff on American products, Trump turned to... Who changed his mind? 〈Trump's "Made in America Dream" is too naïve? Importers shout the end of the world: it is impossible to move back to the production line, order cancellation tide explosion This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".