China and US reach deal to ease tariffs, but manufacturing struggles continue

In Foshan, southern China, many factories are quiet where workers should be assembling high-end air fryers for the US market.

Derek Wang, a factory owner, says his American customers stopped production when tariffs, which reached 145%, were imposed under Donald Trump's "Liberation Day" policies.

Wang tried to stay positive for his 40 workers, but the tariffs hit hard. "I tried to keep smiling through my anxiety," he said. But after a recent deal to ease the trade war, Wang says his US clients have started reaching out again.

Although tariffs are still in place, with 30% on Chinese goods going to the US and a 10% tax from China on US goods, the new agreement gives factories some relief. Wang’s clients are now willing to pay for the tariffs, although they asked for lower costs.

However, many factories in China are still struggling. In Shunde, the “home appliances capital,” some US-linked factories have stopped hiring or shut down parts of their production lines. Workers, after long shifts, spend their free time in parks, enjoying activities like basketball and line dancing.

Even with the tariff relief, China’s manufacturing sector continues to face challenges.

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