Chinese fast-fashion factories in Guangzhou are preparing for the possibility of a renewed trade war with the United States as a partial truce expires on Tuesday. The truce, agreed in May, temporarily halted tariffs that had reached 145% on some Chinese goods under the Trump administration.
The Guardian’s senior China correspondent, Amy Hawkins, visited workshops in Guangzhou, the heart of Chinese manufacturing and fast fashion, to see how workers and factory owners are bracing for the expiry of the deal. There is little sign of a permanent agreement between the two countries, though an extension of the truce remains possible.
Guangzhou’s factories, which produce vast quantities of clothing for global fast-fashion brands, are particularly vulnerable to renewed tariffs. Owners have begun stockpiling materials and exploring alternative markets in case the US imposes higher duties once again.
Workers in the region, many of whom rely on the steady flow of export orders, expressed concern about job security if tariffs are reinstated. The uncertainty has already slowed new orders, with some US buyers holding off on purchases.
Analysts warn that a return to tit-for-tat tariffs could disrupt global supply chains and raise costs for consumers. For now, both sides are negotiating, but no breakthrough is expected before the deadline.
