A brand owner with 90% of manufacturing in China says tariffs are already pushing Chinese factories to move production to Indonesia. They expect $5M in revenue this year and argue the shift is temporary disruption that will ultimately hurt China more than U.S. businesses.
I am a brand owner of multiple brands where 90% of my manufacturing is in China. And despite these tariffs— these tariffs stay, these tariffs go— I am projected to do $5 million in expected revenue this year alone. And let me tell you that these tariffs are gonna hurt China way more than people think. And I think the US has a bunch of leverage because I just had a strategic call with 2 of my manufacturers, my top manufacturers in China, and they are already starting production as far as having a new manufacturing plant being built in Indonesia. So these tariffs are already working. China is already suffering. Can you imagine? I am a small-time player and my manufacturer going ahead and doing this. Can you imagine the scales of the biggest manufacturers in China? They are moving operations away from China and into new countries. So I do think that this is going to be a strategic play, and I do think that China is going to go ahead and play ball. And I basically do think that this is just going to be all temporary. So any brand owner that is worried, anybody that's starting Amazon FBA that is worried, I do think that this is going to be basically just a bump in the road per se.
