Trump’s tariff to hit his re-election flags
US President Donald Trump’s re-election promotional items and merchandise, including flags being produced in Chinese factories, would be subject to his proposed new tariffs against Chinese goods.
The flags bearing campaign slogans “Trump 2020” and “Keep America Great” are being produced at six or seven factories in China, with hundreds of thousands of flags ordered, according to manufacturers.
Keqiao Jiahao Arts & Crafts Co in Shaoxing, Zhejiang province, received the largest order — 90,000 flags.
From late May to July, the company manufactured 20,000 to 30,000 Trump flags at its factory in Fuyang, Anhui province. They expect to complete the order by the end of the year.
By the time the flags are ready to be shipped to the United States, the customer may have to pay more for them thanks to the Trump administration’s proposed tariffs on Chinese goods worth $200 billion.
Flags are among the goods targeted by the tariffs, which are expected to start after the public comment period ends on Aug 30.
“I think what Trump is doing is lifting a rock only to drop it on his own toes,” Yao Dan, owner of Keqiao Jiahao Arts & Crafts, told China Daily on the phone.
Trump campaigned on the promise of keeping more jobs in the US, but reports said his supporters walked around wearing “Make America Great Again” hats that were made in China.
Trump’s re-election campaign denied on Saturday that it is using Chinese manufacturers to produce 2020 campaign flags. Yao declined to name his client, but said they are based in the US.
In 2016, Yao was reported to have successfully predicted the US presidential election result through the orders of campaign flags.
“We produced more than 200,000 flags for Trump from May 2016 to the end of the year, but only 20,000 for Hillary Clinton,” he said.
Yao said the flag industry would be impacted by the trade dispute because they have seen increased orders from the US. “We are currently working on over 200 patterns from US clients, mostly sports flags, police flags and rainbow flags,” he said.
The effect could be limited as China still has the advantages of cheap labor and materials, manufacturing capacity and environmental requirements, compared with international competitors such as India and Vietnam, Yao said.
Even Trump’s suppliers can’t resist the temptation of cheap prices — the flag that’s 0.9 by 1.5 meters sells for 5.5 yuan (81 US cents).
Guangzhou Leben Outdoor Products Co is another contractor hired to manufacture Trump campaign flags. They have produced 30,000 flags so far, and a total order of 80,000 flags is expected to be finished by October.
“Over 70 percent of our clients are from the US. We have salespeople communicating with them in English,” said company owner Lai Xiong, who also declined to disclose the identity of the client who ordered the Trump flags.
Despite the possible impact from the tariffs, Lai doesn’t seem worried about losing business. “China is the world’s No 1 textile supplier. Flags are fast-moving consumer goods. Just like food, the demand is always there,” he said.
Lai said it’s unlikely he’ll offer a discount to his clients if the tariffs are imposed. “They can complain to Trump. He started it, after all,” he said.