Recorded live at the 137th Canton Fair, this special episode dives into real-time insights from factory floors and expert interviews amid escalating trade tensions. We chat with industry leaders including Justin Lin of Easy China Warehouse and Steve Selikoff of Product Development Academy to get their candid takes on tariffs, sourcing strategies, and survival tactics for cross-border sellers.
Guests Interviewed in this Episode
Steve Selikoff: Serial Entrepreneur, Consultant and Author
“If you make your house out of straw or sticks and the big bad wolf comes along, it’s going to blow it down. You’ve got to make your house made out of bricks and stone.”
Justin Lin: Global Supply Chain Strategist, CEO of Easy China Warehouse
“Now it’s like you don’t want your business to fail. If you only use the US, it will cause you to easily go bankrupt. You want to diversify your business and make it stronger.”
Chris Davey: Amazon Expert, 8 Figures Sold on eCom, Serial Entrepreneur
“Tariffs are so unpredictable; you never know if they’re going to be gone tomorrow or suddenly increase to 20%. It’s like trying to plan for the unknown.”
Yalchin Bayramov: Manager at SellerSprite
“Sometimes there’s price volatility, prices increase, but ultimately I think it will come down.”
Jackie: Amazon Seller
“We just keep the stock recently in warehouse and not yet sending out, waiting to see better situation just because it’s increased almost to 145%.”
Will Rodgers: Founder at SellerTrek
“China is not paying the tariff. My customers are. You, the people, the fine people of America, you guys pay for the tariffs.”
Wen Canton Gal: Host/Live Streamer
“Over 50% of the exhibitors are expanding and diversifying to other markets, but of course, there are some pretty bad impacts as well, like having to hold their shipments due to the tariff.”
Amy Wees: E-Commerce Powerhouse & Product Launch Expert | CEO of Amazing at Home
“Despite the tariffs, the mood in China remains positive, and suppliers at the Canton Fair are still open to doing business.”
Jasmine: Sourcing Agent
“The Latin American customers did stop their orders from us and they are waiting for the policy.”
Tanya: Amazon Seller
“I think for the trade war between US and China, it’s a lose-lose situation, but I think it’s only a temporary situation. We will get through very soon.”
Wendy: Exhibitor on Canton Fair
“Actually, our main market is South America, and part of the business is in the USA. The small part of the USA still suffered a lot during the tariff situation.”
Tariff Pressure: High U.S. tariffs, some reaching up to 145%, are causing significant uncertainty and delays for many suppliers and exporters, with some halting shipments entirely.
Market Diversification: More than half of exhibitors are seeking to expand into new markets, such as Latin America, South America, Russia, and Europe, to lessen their dependence on the U.S. market.
Uncertainty and Strategy: Business owners and sourcing agents perceive Trump’s actions as part of a broader negotiation strategy, reflecting tactics from The Art of the Deal rather than The Art of War.
Optimism Amid Chaos: Despite the ongoing disruptions, many remain hopeful that trade will continue and eventually stabilize.
Global Outlook: There’s a belief that this trade conflict could push businesses to become more globally diversified and resilient, preparing them for future challenges.
People / Companies / Resources Mentioned in this Episode
Episode Length 26:54
Thank you everybody for listening in.
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Show Transcript
(00:00) All right, we’re here at the 137th Canton Fair, phase three, right? Going to go show you around. Also, it’s right in the beginning stages of this escalating trade war and tariff war. So, we’re going to actually ask some people and find out what they’re thinking. So, let’s tune in today. Welcome to the Global from Asia podcast, where the daunting process of running an international business is broken down into straight up actionable advice.
(00:29) And now your host, Michael Molini. So I’m here at the Canton Fair. I’m actually at the Hilton having breakfast. Uh just finished a couple of days. I’m going to skip the next day. And I just wanted to of course do my little intro for our week’s podcast. This one it’s going to be a little bit different.
(00:49) You know, you can see even you’re watching you see different. I have a new camera setup. I’m trying to upgrade. And we also interview quite a few experts and and various business people and factories about what they are doing about these tariffs. And after the interviews, I’ll come back here at this table and I’m going to share some of the summaries I’ve learned.
(01:11) So let’s tune in. Do you enjoy the podcast global? Do you enjoy all the community events that we do? The best way to support is coming out to our annual crossborder summit.com in Chiang Mai this November 3rd, 4th, and 5th, 2025. I have amazing speakers, amazing people getting together. We’re pushing the limits. We’re making things happen.
(01:33) This is where the movers and shakers and the dealmakers come. It’s a limited supply of attendees and tickets, and we have been selling out every year. So I recommend checking out earlier crossborders.com. Okay, we’re here with Steve Celakov from product development academy also multiple speaker at our crossber summit.
(01:55) It’s always a pleasure to have you and see I I love the Chiang Mai summit. It is the best. You get the best people there and the whole vibe is better than any conference I ever go to. Awesome. And we’re having it again uh same time November 3 to 5. Yeah. And I will be there. Will I be there? You will. I want you there. Yeah.
(02:16) So, we’re talking tariffs, trade wars. I haven’t even asked you myself, so I’m going to hear your answer live. What do you What you I know you have some different thoughts, so I’d love to hear it. Yeah. My thoughts are a bit different than other people. Um, first of all, I’ll tell you what I think, and that is it’s not sustainable. It’s not going to continue.
(02:37) But this year, it’s tariffs. 2022 it was shipping costs being really really bad. It just, you know, 2020 it was the pandemic. Who knows what’s going to be next and you just have to have your business strong enough. Don’t have low margins. Don’t, you know, be running it by the skin of your teeth.
(03:01) It’s like the three little pigs. If you make your house out of straw or sticks and the big bad wolf comes along, it’s going to blow it down. Yeah, you’ve got to make your house made out of bricks and stone. And if you do that, then any of these I’ve got here’s Becky right here. Here we go. Hello. Hello.
(03:20) It’s her first time here in um in China. First time to the Canton Fair. Really? And she’s already looking to source at a 10x multiplier. Wow. 10. That’s what people are doing because you need to be strong enough. If you’re not strong enough, then you’re going to fail. And when you are strong enough, then your competitors fail.
(03:38) And I’m sorry for being a son of a but this is all about making money. Yeah. I mean, and if you can do well, kills the weak. Exactly. The weak’s going to die. Uh if you’re going around sourcing at 3 or 4x, it’s not going to work. Not anymore. It’s not 2014. So, it sucks. It’s not going to last. But it also helps weaken those that are already weak and more reason for you to be strong.
(04:03) Great. Thank you so much. All right. Thank you, Steve. It’s always a pleasure to have you and and uh app but I I do agree. I mean, I’ve already noticed people, you know, kind of giving up. I’ve been hearing certain certain people, like you said, if they’re razor thin margins and not in for the long term, they’re they’re not going to last.
(04:23) So, I can give you some ideas, though. If you are trying to struggle by right now, here are some things to do. Number one, if you were ever going to raise your prices, this is the time to do it. US customers are expecting price raises. Wait, if you can for your competitors to do it first so that it just seems inevitable, not like you’re being a jerk or something, but raise your prices. This is the time to do it.
(04:50) Um, next, there’s some bad advice out there. People are talking about putting your products into uh bonded warehouses and drip feeding. A bonded warehouse is not what you’re looking for. A bonded warehouse can be anywhere. You’re looking for a free trade zone that has a bonded warehouse in it. It’s a big difference.
(05:12) You can bonded warehouse in a free tra trade zone, but you can also have a bonded warehouse outside of a free trade zone. Don’t make that mistake. Look to save money on your domestic shipping. That’s critical. You may be paying too much for your domestic shipping. So look for alter look for alternatives.
(05:31) Look to combine your domestic shipping with other people so you get a higher discount. Also in the US can you change your manufacturing to the US? If you can do it if you can’t maybe you can figure out creative ways to achieve that. So if you’re doing plastic injection bring your molds in from China to the US do the plastic injection in the US.
(05:56) A terrible secret is that most factories who are doing plastic injection in the US are having the molds made in China anyway, even though they claim differently. So, there’s lots of things to do. Don’t go country shopping. Say, “Oh, I’m going to do this country or that country and move it. Move.” If you’re really small, great.
(06:13) But if you’re doing a serious business, and you should be doing a serious business, then you can’t move everything simply. You can’t do it, you know, overnight. And guess what? Those countries are not immune from potential tariffs as well. So think of the three little pigs. Build your your business, your home out of stone and brick and don’t get blown out of the, you know, by the big bad wolf.
(06:38) That’s a really great analogy. So thanks thanks for uh thanks for sharing with us again, Steve and Product Development Academy and your Canton Fair trip. It’s great. So definitely if you haven’t already, check out what he’s working on and uh and join him for the next learn how to source at a 10x multiplier.
(06:55) It’s great. Thank you. All right, I’m just touched down here in Guangjo, China, and of course meeting my partner and CEO at Easy China Warehouse, Justin Lynn. How you doing, Justin? Hi everyone. Yeah, I’m good. I’m good. Um yeah, over you guys all okay? I know. I mean, we’re watching we’re here in the executive lounge at our at the hotel and there’s been Donald Trump uh on the TV non-stop in China.
(07:25) So, um so I just going to do a short video series going around the Canton Fair. So, starting with you Justin, I know we’ve talked about on a podcast at Global from Asia, but you know, we’re here at the date every day changes. So, it’s the end of April 2025. What What are What are you seeing now with the the tariffs? Yes, that’s my for the turret now is like making like everybody if like uh not shooting good now not like shooting those urgent good if those like high profit product and this more urgent product they will the cargo they will
(08:00) send out but if not urgent they will not stop and see how Trump going to do and Trump probably will today we saw the news right why Trump said uh he made mistake Hey, because now he’s like not doing the business, not doing any business with China now. So, so he probably may may change that like for the coming next two next couple weeks.
(08:22) So, who know right? We don’t know. I know. It seems like uh you know, I’m afraid to ask, but we can always edit it out. But do Chinese people I think Chinese used to like Trump. I guess they don’t like Trump now, right? Or is that a question I shouldn’t ask? Now I think like for it depend on on what kind who who I mean for for us not doing the business like the distributionational business definitely don’t mind him I’m like yeah it’s like but for those people uh still not have relationship not doing the not doing the
(08:58) the directly the business not affect their business they may not like China because China looks like stupid and which mean China to grow because he made a solution and made American and not like n it depends like who Yeah. Well well thanks Justin. Yeah, just we’re just trying a new style of short videos and uh thanks for sharing.
(09:21) But actually one thing maybe I’ll I’ll add I Excalibur Brothers one of the brands I I’m a partner in and I know you’ve been always advising us even before the trade war to go to different markets. But what Excel Brothers is doing is keeping more in the Easy China warehouse in China and work.
(09:44) We got to do a better job, but going to Japan, going to Australia, going to Europe, right? But our brands are still used to US only. I don’t want to say something I don’t do, but we are working very hard to go multi- channel. I think that’s what a lot of sellers are starting to really have to do now. No more excuses. Yeah.
(10:07) Now it’s like you you don’t want your your your business to fr if not do if you only use US that and then now it will cause it will not making your business with fure and it will easy to like like bankrupt right so you don’t want that you want your uh diversify your business and make your business stronger. Yeah.
(10:34) I definitely like I’m seeing like a lot our customer doing that now they they used to only do uh US now they send product to Japan to Australia to Euro UK yeah okay thanks as always for sharing Justin and uh we’ll see you all actually crossber summit little plug uh still a ways away but a little ad is back in Mai November 3 4 and 5 so uh I look forward to seeing you all there and of course check check out easy Chinaarehouse.
(11:06) com for your logistics uh services. So thanks for cheering. Yeah. Yeah. Hopefully to see you guys on cost summit too. Yeah. All right. Okay. See you. Bye-bye. Do you enjoy the podcast global enjoy all the community events that we do? The best way to support is coming out to our annual crossborders.
(11:29) com in Mai this November 3rd, fourth, and 5th 2025. I have amazing speakers, amazing people getting together. We’re pushing the limits. We’re making things happen. This is where the movers and shakers, the dealmakers come. It’s a limited supply of attendees and tickets, and we have been selling out every year. So, I recommend checking out earlier crossborders.com.
(11:51) So, we got our my old friend Chris Davyy here, FBA for you. How’s it going, man? It’s going amazing. Yeah, good as always. Is it? I don’t know. I see the tariffs, you know, the I seen your tweets and your news. What What are your takes on it now? It’s tariffs. I haven’t heard about them. No, I’m joking.
(12:12) Yeah. So, luckily, we sell a lot in Europe. So, for me, it’s like put the US stuff on hold. Um, put our prices up in the US already. Um, try and slow the selling of our stock down. Actually, that’s what we’re trying to do, right? because we don’t know how long we’re going to we got start to go to America, but we’re not going to send it.
(12:35) But the big problem is as well is the fact that it’s like so unpredictable, you know, even they suddenly say there’s no tariffs tomorrow or they’re 20%. Who knows? By the time a shipment arrives. Yeah, exactly. Maybe it’s changed again. Yeah. So, so at the moment, what we’ve done at the moment is we set up an Australia account.
(12:56) We ship direct to Canada rather than shipping to America. We put our prices up in the US to try and sell our slows down uh slow our sales down and we ship some of the stuff that we made for America to Europe because we already 55% of ourselves are in Europe at the moment. So yeah, that’s that’s pretty good. So yeah. Okay. Yeah.
(13:13) Thanks for sharing, Chris. And then your 10th 10th anniversary is well, it’ll be over by the time this online, but congrats on 10 years. I started 2015. Yeah. in April. But, uh, yeah, 10th anniversary makes me feel really old when I say that. It’s great, man. It’s great. All right. Thanks a lot. Cheers.
(13:32) Cheers. Thanks for sharing. All right. We have Yin, my good old friend and seller and also with Seller Sprite, the software we use for our Amazon tracking. And we are here talking about trade wars and tariffs. What do you think? Thank you, Mike. Welcome to China. So last two weeks we sent four shipments already. The price has increased.
(13:57) Mike should know better than me. Price increased like maybe 30%. For us that’s it. Uh we are just doing what we were doing and they’re hoping that uh price will come down ultimately. Yeah. I don’t I do you think they’re going to I think they have Trump’s got to bring it down, right? Or is he going to keep it high? You think? uh even uh our shipment company said that some product we have some electrical product they said oh no you don’t have that 245% that tariff and ultimately I I believe some those crazy tariff will
(14:37) come down just keep doing what you are doing yeah we got to keep going like Steve Celikov he shared he says you have to build a a house not out of straw but out brick. We had to make a strong house. Yeah. Just I remember in 2021 the container price increased three times. Like in 2020 we were sending 4,000 but in 2021 it increased like 16 20,000 but ultimately you know it came down again.
(15:11) Uh sometimes uh maybe there is price volatility prices increase but ultimately I think it will come down. Cool. Thanks. Thanks for sharing Alchin. Thank you Mike. See you in Chiang Mai. Hey Chai. Crossber summit man. November. Awesome. Yeah. See you in Chiang Mai in November. Cheers bro. Okay we have Jackie here. Hello Jackie.
(15:34) Hello. Hello everybody. Hello. Hello Mike. Yes. Nice to meet you. So you are selling on Amazon USA. Yes. Yes. And uh I don’t I know you don’t want to maybe share the product but what category? Toys. Toys. Okay. So you’re doing toy category to the US. What do you I’m sorry.
(15:58) How are you dealing with it? Recently actually we stop selling no just stop shipping out just because of the terrible you know terrible situation. So are you out of stock or you will you go out of stock? Actually we just keep the stock recently in warehouse and not yet sending out waiting to see better situation just because it’s increased almost to 145%. Yeah.
(16:34) So I mean do you still have inventory in USA or no more? Yes we have. Okay. So you’re not you’re not out of stock yet in not yet out of stock. Will you go out of stock or will you ship? We are going to ship something and uh see the situation. Okay. Yes. Okay. I I hope the best for you. Thank you. Thank you.
(16:58) Mac, do you enjoy the podcast global from Asia? Enjoy all the community events that we do. The best way to support is coming out to our annual crossborders.com in Mai this November 3rd, 4th, and 5th, 2025. I have amazing speakers, amazing people getting together. We’re pushing the limits. We’re making things happen. This is where the movers and shakers and the deal makers come.
(17:22) It’s a limited supply of attendees and tickets and we have been selling out every year. So, I recommend checking out earlier crossbersummit.com. The the the bad thing about Trump is he is absolutely hilarious. listening to him, you know, he’s a clown. But it’s funny because he acts and he plays himself. He’s a Nepo baby.
(17:45) All the money he got was from his father, Fred Trump, right? Trump, if Trump had invested all of his money in the stock market when he received it, he’d have more money than he does now. It just shows he’s not a good businessman. But he’s hilarious. Watching him in a debate, an interview, or anything of that matter is hilarious.
(18:02) his facial expressions, his charisma, it’s great. He’s just brain dead. And that’s the problem. And the thing is, people believed him. And I don’t blame them in 2016. I don’t blame them. But I blame them now. Right? If you voted for Trump recently, you got what you got. But I got it, too.
(18:23) And that’s what sucks for us. Us, the collective, us. Because now we are dealing with the tariffs and the price hikes. And it China is not paying that Xinping is not paying the tariff. My customers are. You, the people, the fine people of America, you guys pay for the tariffs, right? And if Amazon does show that on the listings, um it just reassures the American people who to blame, right? And so I hope the tariffs end soon.
(18:53) Uh as we all do, right? We don’t need this. Uh but I give it less than 6 months and the tariffs are gone, right? Trump wants an easy win. and he needs it or else he’s going to lose the midterms. Just getting into Guangjo and I have to meet Wen Canton Gal, right? Well, everybody’s talking about the trade war and then the impression I’ve got that how the Chinese manufacturers uh react to this is like number one, of course, they expand and diversify to other markets. Mhm.
(19:21) And then um basically that’s like over 50% of uh the exhibitors are doing that at the Canon fair. So, and but of course there are some pretty bad um impact as well that they have to hold their shipments due to yeah the tariff. Yeah, I’ve heard some friends and groups I’m in they’re just not taking the shipment out of the customs because it’s going 145%.
(19:45) So, we have Amy with us. Great to see you again, Amy. Hey, thank you. It’s great to be here. It’s awesome. We’re in China again. It’s always something new like now is the tariff talks and other crazy stuff. It’s never a dull moment in e-commerce. Yeah, I can’t believe, you know, it seems though here in China, like everybody’s in uh good spirits despite the situation.
(20:08) So, um yeah, and I mean all the suppliers that we’ve talked to at the Kenton Fair, they’re like, “Oh, you’re from the US.” Like tariffs, everybody’s stopping their orders. And we’re like, you know, it’s good. I’m like, “We’re still friends. It’s good.
(20:19) You know, we’ll make it work.” So, that’s the right way. Okay. All right. We have Jasmine here. How are you? You’re doing Latin America. You work with a lot of Latin America clients, right? For your sourcing. Yeah, we are sourcing agent here in Guangjo, China. And currently, and also we heard a lot of things about tariffs.
(20:44) Uh yeah, and we don’t have many American customers, but the the customer did they did uh stop their orders from us. And so they also they are waiting for the party scene. Waiting waiting. Yeah. All right. We’re here at the Cana Fair at Tanya, my good friend. Many many years. Nice to see you. We were chatting before and about the trade war, what you’re seeing.
(21:10) I mean, you’re also pretty diversified. You have Russia, Latin America, Europe, but also US. So, what what are your what are you seeing and thinking about what’s happening? Uh I think uh for trade war between uh US and China uh I think everybody can win. It’s a lose-lose situation. But I think it’s only temporary situation.
(21:36) Uh yeah, we will get through very soon. Yeah, that’s true. Even with this I’m trying to put this out right away because it might change every day. Yeah. We wake we wake up and we check the news from Donald Trump uh on Twitter. Right. Exactly. And but I think it’s only his tools to try to bargain. Yes.
(21:58) He’s a you know business person. I hope he won’t lose his mind. I think some people say they uh I don’t know if you heard this but he wrote a book called Art of the Deal. Mhm. And we think he’s using a lot of the strategies from his book. And then we say China is using the book art of war. Yeah, I heard the same thing.
(22:21) But at the moment, you know, uh at the beginning, I think, okay, he just tried to pull our government on the table to discuss. But now, nobody can tell what happened, what’s going on. I think maybe it’s a strategy. Maybe I think he’s trying to confuse people and then Yes. So um but uh I think uh the business or the trading always will you know keep going.
(22:49) I don’t think anybody can stop it. Maybe I I was wrong but uh you know if really stopped uh nobody want to see it. No pro no new products. Okay but thanks so much for sharing Tanya and uh I wish you the best with the business. Thank you very much Mike. Hope to see you again in China.
(23:14) We’re here at a a nice booth of it’s like bath and textiles. What’s What’s your name? Uh I’m Wendy. Oh, Wendy. Nice. And we were talking about the tariff. Can you share like what you’ve been seeing and doing from the tariffs? Uh actually currently we can’t do anything for it because uh China and uh uh USA still in discussing for the balance.
(23:39) So, uh, we’re still waiting for some news. Yeah. So, does that mean no no no shipping, no production? Um, for some customer already working for a long time, they won’t stop their business and uh both of us will have some discount and to help them keep going with their business. Okay. Yeah. Yeah. It’s I mean, I think a lot of others are saying similar.
(24:04) They’re they’re waiting to ship until the negotiation’s done hopefully. So, and then you said like South America or other markets you’re talking to. Actually, our main market is South America and part of the business is in USA. Okay. And the small part of the USA still suffered a lot of during the because of the traffic. Yeah. Okay.
(24:31) I hope it goes well. But you’re lucky you have other markets. So, thanks for sharing. Do you enjoy the podcast, Global Asia? Do you enjoy all the community events that we do? The best way to support is coming out to our annual crossborder.com in Mai this November 3rd, 4th, and 5th, 2025.
(24:53) I have amazing speakers, amazing people getting together. We’re pushing the limits. We’re making things happen. This is where the movers and shakers and the dealmakers come. It’s a limited supply of attendees and tickets and we have been selling out every year. So, I recommend checking out earlier crossbersummit.com. All right.
(25:12) So, I hope you enjoyed that segment. I took a few clips. I’m also going to have a video blog like my Mike’s blog.com where I’ll have more like uh fun stuff and also some other interviews and I was at the FBA for you meet up. It was just intense time. Basically, what I’ve learned is they’re stopping shipments.
(25:30) I mean, even we’re stopping shipments. You you talk to Justin Easy China Warehouse. We uh we recommend clients at East China Warehouse only send bare minimum to the US right now. Um even just today, it’s Saturday, May 3rd. Uh China’s finally starting to open up a little bit about the trade war and uh bargaining. They thought that they could just let the US uh change what they said, but I think they’re realizing maybe they got to actually negotiate.
(25:59) So, we all think it’s going to get negotiated, but it’s just taking longer. And, you know, I I’m going to work on Japan. I’m going to work on other markets. I should have done that earlier. I mean, I’ve done that in the past, but uh everybody’s working on other markets at the Canon Fair.
(26:15) Everybody’s looking for non US channels. I think longterm what it’s going to do is it’s going to make a global more a global economy. I mean, I think we had to do it. And we can’t just be in one supplier, one one customer or one, you know, country. And that’s even the name of global from Asia. Anyway, I hope you enjoyed this segment.
(26:33) Please let me know. Feedback’s always appreciated. And thanks for watching. Bye-bye. To get more info about running an international business, please visit our website at ww.globalfroasia.com. That’s ww.globalfroasia.com. Also, be sure to subscribe to our iTunes feed. Thanks for tuning in.
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