Tariff war forces Dongguan factory to halt production

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19th April 2025 – (Guangzhou) The escalating U.S.-China tariff war has begun to show its effects. Recently, DeHong Electrical Products Co., Ltd., a Dongguan-based manufacturing firm with 18 years of history, announced it would temporarily halt production due to the impact of U.S. tariff hikes and other external economic challenges. The company implemented a month-long shutdown starting 11th April.

DeHong’s management issued a notice to employees explaining that changes in client demands had created sudden business challenges. The notice stated that production orders would remain suspended until clients completed price adjustments, leaving the company under significant operational pressure in the short term.

Founded in 2007, DeHong specialises in the research, manufacturing, and sales of household appliances. During the shutdown, employees will receive basic wages in accordance with labour laws. Those opting to resign during this period will have their wages settled immediately.

Reports from cross-border e-commerce platform “Seller’s Home” and plastics industry media “Specialist View” further noted that DeHong’s decision reflects broader difficulties faced by Chinese exporters. The U.S.-China trade war has effectively brought bilateral trade to a standstill.

Media sources warned that if tariffs continue to rise and negotiations remain stalled, disruptions such as halted air and sea shipping routes and factory closures are expected to become more frequent. The tariff war’s impact on manufacturing and export industries in China is deepening, with businesses struggling to adapt to these challenges.