According to a report by the Financial Times, factory operators in China have throttled their production capacities and sent parts of the workforce for a week or sometimes more on the forced vacation. Fabrics, especially dependent on US customers, have even fully paused production.
Due to the US government’s customs policy, American customers had canceled their orders in Chinese factories. The US government has raised tariffs of 145% of Chinese goods. China reacted to this with counter -tariffs of 125%.
Last year 15% of Chinese exports went to the United States. China is by far the largest shoe producer. According to World Footwear Yearbook, 54.6% of the shoes produced worldwide came from the People’s Republic in 2023. 16% of the goods and 23% of the value of this were exported to the USA.
