Tariff truce sparks hopes for Halloween orders in China
YIWU, China, May 14 (Reuters) - A tariff truce between the United States and China is helping kickstart the resumption of trade between the countries but for manufacturers of Halloween decorations in the eastern Chinese city of Yiwu feelings are mixed.
President Donald Trump's tariffs on Chinese imports, which reached 145% in April, prompted waves of U.S. customers to suspend or delay orders for festive decorations, disrupting business for the likes of Lou Xiaobo, whose company Xubo relies on the U.S. for 20% of sales.
The 25-year-old, whose family has been making Halloween decorations in Yiwu for 28 years, warned they would have to scramble to produce and ship their hanging skeletons and costume props to America in time for the October 31 holiday.
Customers are weighing up the cost of the new 30% tariff rate and although he is expecting orders, Lou is also warning customers his business cannot produce more complex made-to-order products in time.
"I don't think because tariffs are lowered; we should be happy, because they have already delayed our production time," he told Reuters from his family's store at Yiwu's sprawling wholesale market.
"In these two months we have lost (to tariffs), we can produce about 500,000 yuan of goods, but now I only have 200,000 yuan...I'm not happy just because tariffs have been lowered."
His comments point to how the damage has been done for many Chinese manufacturers that rely on the U.S. market. While they say the truce has brought hope that orders will return, uncertainty still exists given the current 90-day time limit on lower tariffs and the Trump administration's unpredictability.
China manufactures the majority of festive decorations the U.S. buys, not just for Halloween but for other events such as the Fourth of July and Christmas.
"The tariffs were implemented at the utmost worst time for the Halloween manufacturer, as product was either finished and on a boat being held up, or in some stage of production that was halted," said Robert Berman, a board member of the Halloween and Costume Association and the CEO of Imposta Costumes.
"China for many in the Halloween industry creates a one and done system," he added. "Yes, we can diversify and find new countries, but this will take years, and many of us are too far along to make any changes for 2025."
Another exporter of Halloween masks, who only gave her surname as Ma, said she was hopeful that customers would now place orders, though she believes her overall exporting business turnover will be much lower than last year.
"If people order now, to ship it in June or July, it probably won't be too late, but if we don't have these in stock, which means they have to be made to order, we won't be able to get them in stock for Halloween," she said.
"Anyway, I definitely hope they don't start up the trade war again!"
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