Tariff Truce Sparks Cautious Optimism in Meetings Industry

Skift

13-05-2025

The U.S.–China tariff rollback is welcome news for the industry, but it doesn't erase uncertainty.
The recent agreement between the United States and China to roll back tariffs for a 90-day period has provided welcome, if tentative, relief to the global events industry. While the move could restore some momentum for cross-border events, industry leaders warn that the underlying economic and geopolitical tensions remain unresolved.
Greater Pacific, a 31-year-old U.S.-based promotional products supplier, had paused all projects after the tariffs took effect. With the rollback, production on 180 projects will resume and be shipped.
The impact has been significant. Ben Zhang, Greater Pacific's founder and CEO, had to lay off three full-time employees and two independent contractors.
'As the founder of the company, eliminating jobs is heartbreaking,' said Zhang.
Greater Pacific has also begun diversifying its supply chain beyond China. A recent order for 4,000 pickleball sets came with the stipulation they are not produced in China. 'We are using a factory in India but the price will be 25% higher,' said Zhang.
While the rollback offers short-term relief, Zhang said that Section 301 tariffs remain in place. 'This could be as high as 25% plus 30%,' he said. 'That could cause inflation in the U.S.'
Caution Prevails
The rollback signals a positive shift for global commerce and exhibitions, but industry leaders remain cautious about broader tariff implications involving other countries and economic volatility, said Jochen Witt, president and CEO of trade-show consultancy JWC.
'I anticipate a further weakening of the U.S. dollar, which, combined with tariffs, will likely lead to rising inflation and a decrease in both exhibitor and visitor spending,' said Witt.
Michael Kruppe, chief executive of the Shanghai New International Expo Centre (SNIEC) — the only Sino-German joint venue with Western management — echoes the caution.
'That rollercoaster drama left most people in doubt, and doubt is always negative for most, if not all, businesses around the world, but particularly our expo business, which at its core is face-to-face and needs more time to rebuild trust,' he said. 'Here in China, most expo companies are easily 10–20% behind 2024 results, and I guess the rest of the world does not look much better.'
Joint U.S.-China trade shows have taken a hit. "Right now, on both sides, the trust is not there yet to go bigger, so we may have to wait one to two years," Kruppe said. "It's a pity as we had super American shows in SNIEC like CES."
China Less Vulnerable
Speaking at the UFI Middle East & Africa Conference in Cairo in late April, Witt said China is less vulnerable to U.S. trade pressure. 'China doesn't rely heavily on exports to the U.S., only about 13–14% of its total export volume,' he said, 'making it difficult for the U.S. to gain leverage.'
Witt warned that continued economic tensions could hurt international participation in U.S.-based events. 'This could degrade the overall quality and competitiveness of U.S. shows. At the same time, a weakening dollar and inflation could reduce overall spending,' he said.
While U.S. events may struggle, Witt said European exhibitions could benefit from an uptick in Chinese participation.
'We've seen what happens when organizers become too reliant on a single source of exhibitors,' he said, citing the cancellation of the Cologne Furniture Trade Fair. 'It lost its balance when Chinese sourcing overwhelmed its traditional base.'
Adapting to New Realities
Despite the disruption, Witt sees opportunity. 'Our industry is a mirror of global trade flows. If you watch those shifts closely, you can adjust your strategy and stay ahead,' he said.
Still, he cautioned against overconfidence. 'We are living in a new era,' Witt said. 'With conflicts continuing in Ukraine, the Middle East, and South Asia, and with increasingly autocratic behavior around the globe, the age of long-term planning is over.'
Yet he remains optimistic about the industry's resilience. 'If we stay agile, we can adapt to whatever comes next.'