Otago Daily Times

Trump’s flags could be hit by tariffs

Made in China: Trump’s reelection flags may get burned by his tariffs, report Jiang Xihao and John Ruwitch, of Reuters.

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THE red, white and blue banners for United States President Donald Trump’s secondterm campaign are ready to ship, emblazoned with the words ‘‘Keep America Great!’’.

But they are made in eastern China and soon could be hit by punitive tariffs of Trump’s own making as he ratchets up a rancorous trade dispute with Beijing.

At the Jiahao Flag Co Ltd in Anhui province, women operate sewing machines to hem the edges of ‘‘Trump 2020’’ flags the size of beach towels, while others fold and bundle them for delivery.

The factory has turned out about 90,000 banners since March, manager Yao Yuanyuan said.

It is an unusually large number for what is normally the low season, and Yao believed the ChinaUS trade war was the reason.

‘‘It’s closely related,’’ she said.

‘‘They are preparing in advance, they are taking advantage of the fact that the tariffs haven’t gone up yet, with lower prices now.’’

The Trump Administra­tion has imposed tariffs on

$US34 billion ($NZ50.2 billion) worth of goods from China. After Beijing retaliated in kind, Washington announced levies on an additional

$US200 billion worth of products and threatened more, targeting potentiall­y all of China’s exports to America — including flags.

The campaign banners highlight a paradox in ChinaUS relations under Trump.

At about $US1 apiece, even suppliers to the Trump campaign, who, Yao says, are located both in China and abroad, cannot resist the low price. Yao’s factory has been making Trump banners since the time his tag line as a candidate was ‘‘Make America Great Again’’.

‘‘Sales have been great ever since 2015,’’ she said.

But Trump’s effort to wrest better trading conditions from China threatens that price advantage, and his hardline stance could eventually repel suppliers like Yao.

‘‘If he continues to demand tariff increases as he has been, or if he continues to agree with those who are against China, I definitely would not be able to accept [more orders],’’ she said.

‘‘Everyone can have a patriotic heart, but this won’t improve his economy, and instead it could make us Chinese just shoot ourselves in the foot.’’

The Jiahao Flag Factory does not only make Trump banners. It churns out American and other national flags and specialty banners, including rainbow gay pride flags.

Factory seamstress Sun Lijun is losing no sleep over the trade war, however.

‘‘I know that Trump’s tariffs targeting China will have some effect, but we’re not worried at all, since we’re producing foreign flags every single day,’’ she said.

 ?? PHOTO: REUTERS ?? Flags for US President Donald Trump’s ‘‘Keep America Great!’’ 2020 reelection campaign are seen at Jiahao flag factory in Fuyang, Anhui province, China.
PHOTO: REUTERS Flags for US President Donald Trump’s ‘‘Keep America Great!’’ 2020 reelection campaign are seen at Jiahao flag factory in Fuyang, Anhui province, China.

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