Christmas is still months away, except in Yiwu. This city in China's Zhejiang province hosts the world's largest wholesale market, with 75,000 suppliers spread across six buildings. One of these buildings offers almost everything China makes in terms of artificial Christmas trees, garlands and ornaments. Kitty Shuang Peng took over her parents' factory with her partner in 2024. It was founded 20 years ago with 50 employees.

For the young woman, the trade war started by US President Donald Trump – he decided on Wednesday, April 9, to impose a 145% tariff on Chinese imports – has become a reality. Her American clients have all canceled or put their orders on hold. Of the 250,000 trees produced each year, the majority, she said, will go to South America. In 2025, Mexicans have made a significant breakthrough. "They've already ordered 70,000 from me, which will need to be shipped by the end of the summer," she explained. "I prefer not to ask, but I think a good portion will then cross the border into the United States."

On the floor below, Sheng Li, in her forties, kept repeating that Trump was "crazy" and that the Chinese were "not afraid" as she watched the news on her phone. Her factory, employing 48 workers, produces Christmas tree ornaments in the suburbs of Wenzhou (Zhejiang province). Li is not worried: If the United States permanently disappeared from her clientele, Korea and even Thailand would take over. "It remains an excellent fallback solution because they are increasingly fond of Christmas," she said. "And I can deliver to them in the fall since delivery times are very short."

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