China's prices are just too low for buyers to sweat about tariffs

China can withstand any new tariffs the world throws at it - even the punitive ones Donald Trump is planning if he wins a second US presidential term - because its prices are simply too competitive to resist.

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That is the predominant view at April's Canton Fair. Many buyers and sellers at China's biggest trade event, held in the southern city of Guangzhou, shrugged off the risk of an escalating trade war.

"My customers told me even a 50 per cent tariff won't come close to driving them away," said Mr Jack Jin, who sells cargo-control tools and truck parts from south-east China. He said about half his orders come from Americans - who can sell his products for four times what they pay him.

Tension between China and its trading partners is escalating in a US election year, amid allegations that the world's top manufacturer is dumping goods and unfairly subsidising industries.

The list of targeted products is getting longer, including metals and ships as well as electric vehicles (EVs).

Trump says he might impose an across-the-board China tariff of more than 60 per cent. President Joe Biden his opponent in November's election - last week pledged to triple charges on Chinese steel, an area where emerging economies have voiced concerns too.

The European Union has launched a probe into Chinese EV subsidies that could lead to new tariffs within months, and is scrutinising the solar and rail industries.

But traders at the Canton Fair said the world will need Chinese goods no matter what. They are coming up with workarounds for tariffs. And even buyers who are looking into supply chain alternatives said they still expect China to remain their top source, because other countries lag in quality and cost.