People's Financial News｜Zhejiang China Commodities City Group: Tariff Policy Adjustments Have No Substantial Impact on Overall Business and Limited Effect on Yiwu's Exports

According to People's Financial News on April 7, Zhejiang China Commodities City Group Co., Ltd. stated on an interactive platform on April 7 that as the core hub operator of global small commodity trade, the Company has conducted a comprehensive analysis of relevant policy adjustments. Based on the characteristics of Yiwu market's diversified export structure and outstanding supply chain resilience, combined with current business data, the Company believes that the tariff policy adjustments made this time have no substantial impact on its overall business and has limited impact on Yiwu's exports. The specific situation is as follows: ① Yiwu market has a rich variety of commodities and a significant attribute of rigid demand. The market has more than 2.1 million SKUs, covering the entire chain of daily consumer goods. The commodities, featuring sufficient supply, stable quality and high cost performance, maintain strong competitiveness in the global market.

② Yiwu's trading partners are increasingly diverse. In 2024, Yiwu's total import and export value with Belt and Road countries reached 413.34 billion yuan, up 18.2% year on year. It accounted for 61.8% of the city's total import and export value during the same period, becoming a core driving force for foreign trade growth. By leveraging Yiwu's strategic location on the Belt and Road, the Company has developed an extensive global network that spans emerging markets such as Asia, Africa, the Middle East, Southeast Asia, and Latin America. The customers are highly dispersed, demonstrating a strong capacity to mitigate risks associated with any single market.

③ The impact on Yiwu's exports to the United States is limited. In 2024, the exports to the United States mainly focused on textile and clothing, light industrial commodities, and electromechanical commodities. The light industrial commodities mainly include daily consumer goods such as toys, Christmas supplies, and small household appliances. In the United States, labor and storage expenses represent a significant portion of the final sale price. These products maintain a competitive price advantage even after additional tariffs have been applied. Taking into account the additional tariffs imposed on other global regions simultaneously, the impact on Yiwu market is limited. Based on the Company's research, more than 3,000 merchants in Yiwu International Trade City are engaged in trade with the United States, with over 100 merchants directly conducting trade with that country. Faced with shrinking profit margins due to the United States' tariff increases, merchants widely noted that they could mitigate the impact through methods such as raising commodity prices, enhancing products' added value, optimizing production processes, and boosting their own competitiveness.

The above information is provided for reference purposes only and does not constitute investment advice.