00:00Chinese producers of plastic Christmas trees and decorations expressed worry on Wednesday.
00:07That's as U.S. President Donald Trump's tariffs took effect, including 125% duties on Chinese goods.
00:15China's Christmas industry said on Wednesday that orders from the U.S. have slowed,
00:20with both sides cautious about the risk of import tariffs rising further.
00:24These tariffs are the latest step in an escalating trade war that threatens great pain for China,
00:30the world's largest exporter of manufactured goods.
00:34U.S. retailers are almost completely reliant on the country for Christmas decorations, sourcing 87% of their goods here.
00:43Chinese factories are also heavily dependent on the U.S. market, where they sell half of what they make.
00:49Li Bo, a product developer at Jia Song Craft Factory, said before the latest tariff hike,
00:56U.S. clients asked his company to ship as early as possible.
01:00Now, he says, these clients haven't rushed for products and are in a wait-and-see phase.
01:05China's 84% retaliatory tariff on U.S. goods came into effect on Thursday.
01:11That's up from the previously announced 34%.
01:14American Christmas Tree Association's Jamie Warner said she's concerned as tariffs ramp up.
01:20We're really not sure how the consumer is going to react to this.
01:26But prices will definitely double for all of our products.
01:31And we don't know if that's sustainable.
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