The annual Global Sources trade show in Hong Kong opened with the usual spectacle—cutting-edge gadgets, throngs of attendees, and manufacturers showcasing the latest innovations. But this year’s excitement is tempered by growing anxiety as intensifying US-China trade tensions ripple through global supply chains.
Against the backdrop of escalating tariffs between the world’s two largest economies, uncertainty hangs over the convention halls like a cloud. The United States has raised import tariffs on Chinese goods to a staggering 145%, prompting China to respond with a sweeping 125% levy on American products. The tit-for-tat moves are beginning to unsettle what has long been a highly integrated trade ecosystem.
For many Chinese manufacturers at the event, the fallout is already tangible. Liu Tongyong, sales manager at Gaoxd Precision Industry, a Dongguan-based manufacturer of computer peripherals, reported a sharp drop in sales—down 20% since the start of the year. The firm’s keyboards and mice have not been included in recent US tariff exemptions, and with the American market comprising 30% of its business, the impact is profound.
“Everyone’s hesitant. If you’ve got stock on hand, no one’s eager to make new purchases,” Liu explained. “And with costs already squeezed to the minimum, there’s no more room to lower prices.”
Relocating production to other countries isn’t a straightforward fix either. Liu points out that replicating China’s mature manufacturing ecosystem abroad would likely lead to higher operational costs, not savings.
The sentiment is echoed by other exhibitors. Frank Zhang, business manager at Sky Wing Communication Electronics, also based in Dongguan, said the current geopolitical environment is making long-term planning difficult. With at least 30% of their revenue tied to US clients, the pressure is mounting. Buyers are now requesting price cuts or delaying orders altogether.
“Companies like ours have no choice but to accept the circumstances. We’re simply waiting for a clearer direction before making big moves,” Zhang said.
Sky Wing had been preparing to expand operations into Cambodia, but plans are now on hold due to shifting trade policies. Even as they explore new markets in the Middle East, Zhang emphasizes that a reduction in tariffs remains the best-case scenario.
Meanwhile, international buyers are also bracing for disruption. Bill King, president of Atron Electro Industries, a Canadian importer of electronics from China, expressed concern about how businesses worldwide will need to adapt. “We’re entering a phase where global supply chains are being redrawn. Everyone will need to find new ways to work together under these new realities,” he said.
Although calls for renewed trade talks between the US and China continue, no concrete timeline has been set. Exhibitors at the Hong Kong show remain cautiously hopeful, but the prevailing mood is clear: in an era of global uncertainty, even the most established industries are finding themselves on shaky ground.
