Yiwu, China, often referred to as 'Christmas Town', is a crucial supplier of nearly 90% of decorative Christmas goods in the United States, primarily through its extensive wholesale market.

As a result of these trade tensions, many vendors have begun suspending or canceling their orders ahead of the holiday season, raising concerns about product availability for US consumers.

Despite attempts to offer discounts to maintain business, many vendors are witnessing the dissolution of longstanding partnerships, underscoring the human impact of these trade policy changes.

These tariffs could also result in increased prices for Christmas decorations, impacting both sellers and buyers during the critical holiday shopping period.

For instance, vendor Ran Hongyan, who has 15 years of experience, reported losing 80% of her US contracts, translating to over $135,000 in losses due to the tariffs.

However, the ongoing US-China trade war has created significant challenges for vendors in Yiwu, with triple-digit tariffs imposed by the US disrupting long-standing trade relationships with American customers.

The economic uncertainty stemming from the trade war has fostered a climate of anxiety among Yiwu vendors, who are increasingly concerned about the future of their businesses and families.

In response to the declining US orders, vendors are seeking alternative markets, with some pivoting towards the EU and domestic markets.

The broader implications of the trade war extend to small businesses, with potential economic slowdown looming as the holiday season approaches.

Overall tariffs on Chinese goods have surpassed 145%, the highest in nearly a century, leading to a significant loss of customers and profits for many Yiwu vendors.

In light of these challenges, Chinese exporters are diversifying their trade relationships, reducing the share of US exports from 19.2% in 2018 to 14.7% in 2024.

Yiwu's economy is heavily reliant on exports, having shipped $81 billion worth of goods overseas last year, including $11.5 billion to the US.