Canadian CEO cuts out US middlemen, forges direct China ties as supply chains break down
Amid the labyrinth of stalls at Yiwu's small-commodities market – the world's largest wholesale hub, located in eastern China – Canadian retailer Luke Therrien weaves through aisles of Christmas trinkets, keychains and gadgets, scanning for suppliers he once sourced through American middlemen.
Those intermediaries used to curate goods from hundreds of Chinese factories and repackage them for North American retailers like Therrien, the CEO of his company.
But now, amid deepening trade tensions, stock shortages and tariff headaches across the border in the US, Therrien has come straight to the source. The shift has added weeks of legwork and logistical hurdles – but it may also be steering him toward a more sustainable and cost-efficient supply chain.
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'One door closes, another opens,' Therrien said. 'It will be hard for us for this particular season, as we are buying for the Christmas season. But from a pricing perspective, it's obviously better for us [in the long run].
'For anybody in business right now, you're going to have to finesse and find new ways to source products; that's just the reality of things. We are going to have to move more and more of our purchasing outside of the US and try to find more direct players.'
Some shipments were taxed, others weren't – it's a complete mess right now.
Huang Feng, exporter
The trade war is doing more than rattling the world's two largest economies – it is quietly redrawing the map of global supply chains. Tariffs are no longer just a matter of cost; they are fundamentally reshaping the way goods are sourced, traded and moved across borders.
At one end, buyers like Therrien are bypassing US intermediaries and forging direct ties with Chinese suppliers. At the other, Chinese exporters are witnessing growing disarray inside the US market – from backlogs at customs to erratic tariff enforcement – as the pressure starts to fray long-standing trade routes from within.
Huang Feng, who exports more than 70 per cent of his goods to the US, said inconsistent tariff enforcement has made the situation increasingly unpredictable. Some containers are taxed, others are not.
'We were told we might have to pay the difference later, but no one knows exactly how or when,' he said. 'Some shipments were taxed, others weren't – it's a complete mess right now.'
He added that, while he has long focused on the US market, shifting to other countries is not an easy task – especially given the scale of existing operations and standards and the fact that exporters still benefit from US dollar dominance.
If the dollar were to lose its global standing, Huang would not continue doing business with the US, he said.
'I wouldn't want to double down on the US any more,' he said. 'The country's credit standing is falling apart. I don't have much confidence in it – or much affection for it, to be honest.'
The US dollar remains the world's dominant trade currency, backed by deep capital markets and relative stability. For exporters, settling deals in dollars often means more predictable payments and better exchange rates – a key reason many still rely on the US market despite growing risks.
Washington has imposed tariffs totalling 145 per cent on Chinese imports so far this year, bringing the effective tariff rate to about 156 per cent. According to a fact sheet released by the White House, China now faces tariffs of up to 245 per cent.
Kwong Boey, a supply-chain practitioner based in Suzhou who sells home appliances to North America, said his supply chain has gone from disrupted to broken.
'All new orders are cancelled, all existing orders are on hold,' he said, adding that shipping containers have been retrieved from Chinese seaports, and that vessels already en route to the United States have been called back.
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