Trump tariffs: China warns of trade war impact even as economy grows faster than expected

“Trump is a crazy man,” says Lionel Xu, who is surrounded by his company’s mosquito repellent kits – many were once best sellers in Walmart stores in the United States.

Now those products are sitting in boxes in a warehouse in China and will remain there unless President Donald Trump lifts his 145% tariffs on all Chinese goods bound for the US.

“This is so hard for us,” he adds. “We are worried. What if Trump doesn’t change his mind? That will be a dangerous thing for our factory.”

Nearby, Amy is helping to sell ice cream makers at her booth for the Guangdong Sailing Trade Company. Her key buyers, including Walmart, are also in the US.

“We have stopped production already,” she says. “All the products are in the warehouse.”

It was the same story at nearly every booth in the sprawling Canton Fair in the trading hub of Guangzhou.

More than 30,000 businesses have come to the annual fair to show off their goods in several exhibition halls the size of 200 football pitches.

When the BBC speaks to Mr Xu, he is getting ready to take some Australian buyers to lunch. They have come looking for a bargain and hope to drive down the price.

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