Are Trump's tariffs just punishing China for being good at what it does?

CBS News

02-05-2025

Guangzhou, China — The annual Canton Fair in Guangzhou is China's largest import-export trade show. It covers a space equal to about 200 football fields and has been running since 1957 — when China's economy was isolated from the rest of the world. The country's leaders decided the expo, since formally named the China Import and Export Fair, was the best way to overcome trade obstacles imposed by the West and to drum up business investment and interest from overseas markets.
In the almost seven decades since, China has transformed into the world's manufacturing powerhouse. But President Xi Jinping's government believes the U.S. is once again working to isolate China, through President Trump's tariff trade war, and that Washington will try to force other countries — and their consumers — to pick a side.
Richard Qiu told CBS News it's simply unfair. Wearing a pale blue Ralph Lauren shirt, the businessman invited CBS News to sit down in his display booth at the Canton Fair for a chat. Surrounded by thousands of small fabric gift bags designed for everything from Christmas to Easter to birthdays, the fact that Qiu even quickly agreed to an interview was disarming; Every other Chinese businessperson we approached turned our camera away, wary of speaking with foreign media.
His openness and warmth indicated a sense of ease with Westerners, and more importantly, his desire to tell his story about how external forces, completely out of his control, were affecting him and his livelihood.
Qiu's Liaoning Perfect Import/Export Co. Ltd has been making gift bags for 20 years, and he has fostered strong relationships with his U.S. customers, who, in recent years, have made up 30-40% of his exports. He's traveled to the U.S. at least six times and says he loves the country: "It's about freedom, democracy, it's open and fair."
"But this isn't fair," he said of the trade war sparked by President Trump's steep tariffs. "It makes me feel sick about the U.S. now."
An overseas buyer visits the gifts and premium area of the second phase of the 137th Canton Fair, April 27, 2025, in Guangzhou, Guangdong Province, China.
Chen Jimin/China News Service/VCG/Getty
Mr. Trump insists his tariffs will, despite current economic pain in the U.S., bring manufacturing back to America and buoy the economy, reshaping the global trade system. But Qiu said it's about something else. He believes President Trump is punishing China for being the best at producing everyday products at affordable prices, and using that prowess to dominate the global market.
"Our people are industrious, diligent, working hard to make the products good price, good quality, to sell all over the world. It's not our problem," he said. "I think it's your problem."
Since Mr. Trump imposed 145% tariffs on all Chinese imports — though the White House later exempted smartphones and some other electronics from the levies — Qiu says his U.S. sales have ground to a halt.
"U.S. buyers said, 'Richard you have to stop production; we have to cancel it.' I think 90% of my U.S. orders will be canceled."
For years, the Canton Fair has been packed with American buyers looking to bring their customers back at home the best possible deals on offer. But this year, officials admitted to CBS News that the numbers are way down — another sign of President Trump's trade war taking hold.
One American we did come across perusing the stalls in Guangzhou wasn't there to buy, but rather to research new products.
"Tariffs are going to come down at some point and we need to be ready for it," Jonathan Scheerz who lives in Michigan, where he runs a homewares business, told CBS News. He said he got a lot of orders in for products from China before Mr. Trump's inauguration, because he was anticipating a trade war — but not like this.
"I don't want to bring them in at the current tariff rate," he lamented. "It just doesn't work. It's too high, but I also don't believe it's going to last months and months."
The optimism is based on his belief that no one does it better than China when it comes to offering so many different products at such low prices.
"In my eyes, China produces what you want," Scheerz said. "Simple as that."
But if the trade war does drag on, many business owners who spoke with CBS News off camera said they were prepared to take the pain.
Qiu knows tough days are ahead. He's looking to diversify his export portfolio in Europe, but there's only so much the market can absorb, so it's uncertain times.
"It's like a war, I think. Under a war, the most suffering is the people, no matter if it's the U.S. or China," he told CBS News.
Qiu added, however, that over the course of China's history, the country has endured real hardship and pain, and he believes the Chinese people have the strength and fortitude to do it again.
"If we do something unfair, I will not support the government, but it's your government — the U.S. government that's put unfair things on us, so we say, 'okay, we fight.'"