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World's biggest small-commodities market unfazed by US tariffs

Operators at Yiwu expand horizons, diversify products to counter disruptions

By CHEN YE in Yiwu, Zhejiang | CHINA DAILY | Updated: 2025-04-23 07:20
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A merchant negotiates prices for insulated bags with Ethiopian traders at the market on April 15.[SHI BUFA/FOR CHINA DAILY]

Although they had plenty of orders early this year, April has been noticeably quieter compared with previous years. A direct impact of the tariff war has been the sharp decrease in order volumes, he said. Bulk orders of thousands, or tens of thousands, of units have dropped to just dozens.

Mao said the drop in volume is due to several factors.

"The overseas supply chain for these products is nearly saturated," he said. "After COVID restrictions were lifted demand exceeded supply, but now it's the opposite. Plus, due to economic uncertainties and exchange rate fluctuations brought by the tariff war, foreign buyers are more price-sensitive and prefer placing smaller orders."

To adapt to changes in the trade landscape and the US tariffs, Mao said Yexin Electronics is shifting from a business-to-business model to a business-to-customer one.

"We used to be an OEM (original equipment manufacturer), but now we're building our own brand with unique product features," he said. "We're also exploring other markets like Russia and South America, and considering domestic sales. Local sales require changes in packaging and compliance with domestic standards, making overseas markets comparatively easier to navigate," Mao said.

During the interview with China Daily, Ecuadorian importer Marlon Duche and his team were at Yexin Electronics asking about the prices of travel chargers. Yexin was the first store Duche visited on his Yiwu trip, but he said he would compare prices at other outlets. When asked about the impact of the tariff war initiated by the Trump administration, Duche said, "We're from Latin America, so the tariffs don't impact us at all."

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