'Trump wants to...': Defiant mood among Chinese exporters as Trump’s tariff war escalates

Chinese exporters defy Trump tariffs as China boosts nationalist response.

As Donald Trump’s escalating trade war sends shockwaves through global markets, Chinese exporters in Yiwu — a hub known for mass-producing holiday goods and political merchandise — are displaying calm determination rather than panic.

Nationalism Fuels Confidence

The eastern city of Yiwu, a key exporting base for goods ranging from Christmas trees to “Make America Great Again” caps, is embracing a spirit of defiance. Business owners there say they are confident in China’s ability to weather the storm, echoing the government’s rising nationalist tone.

“Trump wants to steal a slice of China’s pie,” exporter Kenny Qi told the Financial Times from his store covered in Trump-themed apparel. Qi believes Beijing’s retaliatory 125% tariffs have surprised Washington and predicted the US president would reverse course “in half a month at most.”

Trump’s latest tariffs more than double the 60% rate he floated during his campaign — a level then seen as extreme by many economists.

Echoes of Mao and Defiance Online

Amid the trade conflict, the Chinese government has ramped up nationalist messaging. Social media posts invoke Mao Zedong’s wartime speeches, portraying the US as a “paper tiger” and framing the trade war as a test of national resilience.

Beijing’s retaliation has gone beyond tariffs. Measures include limiting Hollywood film imports and warning citizens against studying or travelling in the US. State-run media have described an “egg crisis” and other shortages in the US, asserting that Americans are struggling under the weight of Trump’s policies.

Exporters Feel the Pressure

Yiwu exporter Nie Ziqin, who started as a factory worker and now employs over 100 people, told the Financial Times the tariffs were “shocking and disappointing” after years of doing business with the US. Despite cancelled orders forcing her to lay off 10% of her staff, she refused US demands to cut prices.

“Chinese people think differently from foreigners,” Nie said. “We save money… we can survive one, two, even three years.”

Confident in China’s work ethic and endurance, she added: “We Chinese will win any protracted war… we can ‘eat bitterness.’”

Other Regions More Exposed

While Yiwu exporters have diversified to Europe and developing markets, other regions, such as Zhengzhou—where Apple’s iPhones are assembled—face greater uncertainty.

“Everything is normal for now, but China is under great pressure,” a Foxconn worker told the Financial Times. As Apple shifts some production to India, Zhengzhou employees fear reduced shifts. Foxconn declined to comment.

A logistics salesperson in Zhejiang province noted that despite efforts to diversify exports, “the US market remains unmatched in size and consumer power.”

Unity Among Competitors

In an unusual show of solidarity, Yiwu businesses are sharing their overseas customer networks with larger firms hit harder by the trade war. “They used to look down on us,” said Zhu Yuelai, a camping goods exporter, “but now we’re helping each other.”

Meanwhile, Qi remains confident in demand for his Trump merchandise. Even with tariffs, he said, profit margins remain generous. “A Trump cap costs $1 to make. Even with tariffs, it’s $20. But in the US, they sell for $50 or more.”

“American sellers could even use tariffs as an excuse to raise prices,” he added. “The cost will still fall on US consumers.”