August 15, 2025

Tariffs, Trade War, and the Factory Floor: Buyer Risks in 2025

38 minutes

Tariffs, shifting trade policies, and unpredictable order patterns are creating a “stop–go” manufacturing environment in China. For buyers, this means unexpected quality issues, capacity crunches, and supply chain instability.

In this episode of China Manufacturing Decoded, Renaud Anjoran and Adrian from the Sofeast team break down the real-world impact of the US–China trade war as of August 2025. Drawing from first-hand observations in Chinese factories, they explain how rapid swings in orders, staffing changes, and material substitutions can put your product quality and timelines at risk, even if you’re not selling to the US.

If you source from China or work with Chinese manufacturers, this discussion makes you aware of the hidden risks caused by market instability, and offers strategies to protect your interests.

Episode Sections:

00:00 – Introduction and why China’s manufacturing sector is unstable right now

01:01 – How US–China tariffs create a “seesaw” effect: front-loading orders, sudden slowdowns, and ripple effects through the supply chain

05:02 – Inside the factory: whiplash in capacity, fixed costs, and the risks of unplanned subcontracting

11:16 – Factory cost-cutting responses: wage cuts, temporary workers, and seasonal hiring challenges

18:39 – Order bunching, Chinese New Year parallels, and the quality risks of untrained staff and inspectors

25:00 – Material substitutions without buyer approval, visibility in the supply chain, and controlling quality under instability

32:45 – Building stronger relationships, smoothing production, and financing suppliers to maintain stability

37:45 – Wrap-up and buyer takeaways