by YANG Bingke

When a US client flew in from Shenzhen to inspect a batch of fans at Zhongkang Electrical Appliances in Cixi, Zhejiang, it seemed like a routine business visit. But after the inspection, the order was abruptly canceled. “They said they weren’t going to ship after all,” said general manager Li Benzhi. “We’re just stuck.”

Zhongkang is one of many appliance manufacturers in Cixi, a county-level city known as China’s “small home appliance capital.” Around 30 per cent of its products—mainly circulating fans—are exported to the US. But after Washington hiked tariffs on Chinese goods to 145 per cent, shipments to the US came to a standstill.

Most Cixi manufacturers are now in a holding pattern, watching for further developments. A few are exploring alternatives such as rerouting trade or building factories in Southeast Asia, though many remain skeptical about those options.

The tariff escalation, led by US president Donald Trump, has reignited trade tensions and left Chinese exporters scrambling. Local data shows that the US, EU, and ASEAN together account for over half of Cixi’s exports. Mechanical and electrical products make up more than 80 per cent of shipments, with home appliances alone representing 40 per cent.

In Guanhaiwei town, a hub for small appliance producers making items like air fryers, steam irons, and fans, the pressure is mounting. “The tariff shock hurts the US more than it hurts us,” said Li, noting that logistics costs for US buyers have surged. He said manufacturers understand why many American clients have hit pause—once tariffs and port fees are added, the cost becomes too high to justify.

For now, Li and his clients are staying in touch via email, with goods sitting idle in warehouses, awaiting policy shifts.

Other local firms are also being cautious. Yu Xuehui, general manager of Ningbo Xingdian Technology, which operates two cross-border e-commerce platforms, said all their sales go to the US. Some clients have paused orders, while others are pushing for discounts of up to 20 per cent. “That’s just not doable,” Yu said. “Five per cent profit is already solid—we can’t take a loss.”

Yu’s company still has inventory in the US that arrived before the tariffs kicked in. While that gives them an edge for now, pricing remains delicate. “If we raise prices alone, we’ll lose rankings and sales. But once inventory runs out, we’ll all have to raise prices.”

Southeast Asia has been floated as a potential manufacturing base, but few in Cixi see it as a real solution. Labor can be unreliable, and the supply chains lack the depth and responsiveness found in China. “One broken mold can delay everything,” said Ma Baisheng, general manager of Yishang Electric. “Here in Cixi, a spare part is just a phone call away.”

Yu agreed, pointing out that many factories that moved abroad have since returned. “Home appliances cover 300 product categories, and each product can require up to 100 components,” he said. “If even one is missing, you can’t assemble the product. In Cixi, any part can arrive within an hour—and there’s more than one supplier for everything.”

Rather than relocating, some manufacturers are turning to the domestic market or seeking new opportunities abroad. Yu recently hosted Australian clients who said they were overwhelmed by outreach from Chinese factories keen to expand down under. He’s also investing in product upgrades to stand out in a crowded market.

“Meat grinders used to sell for US$159 in the US. Now they’re down to US$59 due to competition,” Yu said. “But it shows the US market will pay for quality—if you can offer something better.”

While the challenges are real, they’re not yet overwhelming. Europe remains Cixi’s largest export market, unlike Shunde in Guangdong, which relies more heavily on the US. Still, big players like Pioneer Appliances, known for its heaters and fans, are feeling the pressure.

Local authorities are paying attention. Officials in Ningbo and Cixi have launched visits and roundtables to hear directly from companies affected by the new tariffs.

Back at Zhongkang Electric, Li remains cautiously optimistic. “We’ve been through this before,” he said. “US exports are on hold for now, but we’ll ride it out. The trade war won’t last forever.”