Canadian CEO Bypasses U.S. Middlemen, Directs China Ties Amid Supply Chain Chaos
Navigating the maze-like rows of stands at Yiwu’s global superstore for small goods – which boasts being the biggest wholesale center in the world, situated in eastern China – Luke Therrien, a shopkeeper from Canada, moves among lanes filled with festive ornaments, bracelets, and gizmos. He scans the area looking for providers who were previously accessed via intermediaries based in America.
These intermediaries would select products from numerous Chinese manufacturers and repackage them for North American retail companies such as Therrien’s firm, where he serves as the CEO.
However, with escalating trade tensions, inventory shortages, and tariff issues cropping up north of the border in the United States, Therrien has decided to go directly to the origin. This change adds several weeks of work and logistical challenges—but it could also guide him towards a more sustainable and economical supply chain.
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One door closes, another opens," Therrien stated. "This will be challenging for us during this specific season since we are preparing for the Christmas period. However, from a pricing standpoint, it's clearly more advantageous for us over time.
Anyone involved in business today will need to be adept at finding innovative methods for sourcing goods; this is simply how things stand. Increasingly, we'll have to shift our buying activities beyond U.S. borders and seek out more direct suppliers.
The ongoing trade conflict extends beyond unsettling the globe’s top two economic powerhouses—it is subtly remapping international supply networks. The tariffs have transcended their role as mere financial considerations; instead, they are substantially altering how products are obtained, exchanged, and transported internationally.
At one end, buyers like Therrien are bypassing US intermediaries and forging direct ties with Chinese suppliers. At the other, Chinese exporters are witnessing growing disarray inside the US market - from backlogs at customs to erratic tariff enforcement - as the pressure starts to fray long-standing trade routes from within.
Huang Feng, who ships over 70 percent of his products to the U.S., mentioned that inconsistent tariff implementation has created an increasingly uncertain environment. Sometimes certain containers face taxes while others do not.
"We were told we might have to pay the difference later, but no one knows exactly how or when," he said. "Some shipments were taxed, others weren't - it's a complete mess right now."
He mentioned that although his primary focus has been the U.S. market for quite some time, expanding into other nations poses significant challenges—particularly due to the size of current operations, adherence to established standards, and the ongoing advantage enjoyed by exporters because of the supremacy of the U.S. dollar.
Should the dollar cease being globally significant, Huang stated that he wouldn’t keep conducting business with the United States.
"I wouldn't want to double down on the US any more," he said. "The country's credit standing is falling apart. I don't have much confidence in it - or much affection for it, to be honest."
The US dollar remains the world's dominant trade currency, backed by deep capital markets and relative stability. For exporters, settling deals in dollars often means more predictable payments and better exchange rates - a key reason many still rely on the US market despite growing risks.
Washington has imposed tariffs totalling 145 per cent on Chinese imports so far this year, bringing the effective tariff rate to about 156 per cent. According to a fact sheet released by the White House, China now faces tariffs of up to 245 per cent.
Kwong Boey, a supply-chain practitioner based in Suzhou who sells home appliances to North America, said his supply chain has gone from disrupted to broken.
"All new orders are cancelled, all existing orders are on hold," he said, adding that shipping containers have been retrieved from Chinese seaports, and that vessels already en route to the United States have been called back.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.
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