Tariff truce sparks hopes for Halloween orders in China

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.

- REUTERS

President Donald Trump's tariffs on Chinese imports, which reached 145% in April, prompted waves of US customers to suspend or delay orders for festive decorations, disrupting business for the likes of Lou Xiaobo, whose company Xubo relies on the US 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.