U.S. – China’s temporary tariff rollback is providing short-term relief to the global event industry, which has suffered losses from trade tensions, disrupting supply chains, cutting budgets and casting shadows on international exhibitions.
Great Pacific is a 31-year-old U.S. promotional products supplier, and all projects were stopped after the tariffs came into effect. With the rollback, production of 180 projects will be restored.
A great impact. Ben Zhang, founder and CEO of Great Pacific, must lay off three full-time employees and two independent contractors.
“It’s heartbreaking to eliminate the work as the founder of the company,” Zhang said.
The Great Pacific has also begun to diversify its supply chains outside of it. A recent order to 4,000 sets of kimchi races has introduced a provision that they are not produced in China. “We are using a factory in India, but the price will be 25% higher,” Zhang said.
While the rollback provides a short-term relief, Zhang said the Article 301 tariffs remain. “This could be as high as 25% plus 30%,” he said. “This could lead to U.S. inflation.”
Be cautious and competent
Jochen Witt, president and CEO of trade show consulting firm JWC, said the rollback marks a positive shift in global business and exhibitions, but industry leaders remain cautious about the wider tariff impact and economic volatility involving other countries.
“I expect further weakening of the dollar, coupled with tariffs, could lead to higher inflation and a decline in exhibitor spending,” Witt said.
Michael Kruppe, CEO of Shanghai New International Expo Center (SNIEC), is the only joint venue in the Republic of China with Western management, echoing caution.
“The drama of roller coaster makes most people doubt that for most (if not all) businesses in the world, especially our fair business, especially our fair business, it’s the core of face to face, it’s face to face and it takes more time to rebuild trust,” he said. “In China, most fair companies are prone to falling behind the results of 2024, and I think the rest of the world doesn’t look much better.”
United States – China Trade Fair takes a hit. “At the moment, trust between the two sides has not yet developed, so we may have to wait a year or two,” Krup said. “It’s a pity because we have super American gigs in Sniecs like CES.”
China is less vulnerable in tariff war
Speaking at the UFI Middle East and Africa Conference in Cairo in late April, Witt said China is not vulnerable to U.S. trade pressure. “China does not rely on U.S. exports, accounting for only 13-14% of its total exports, making it difficult for the United States to obtain leverage,” he said.
Witt warned that ongoing economic tensions could hurt international participation in U.S. events. “This could reduce the overall quality and competitiveness of the U.S. display. Meanwhile, lower dollar and inflation may reduce overall spending,” he said.
While U.S. events may struggle, Witt said European exhibitions could benefit from growth in Chinese participation.
“What happens when organizers become too dependent on an exhibitor,” he said. “It loses balance when Chinese procurement drowns out its traditional foundation.”
Adapt to new reality
Despite the disruption, Witt saw the opportunity. “Our industry is a mirror of global trade flows. If you watch these shifts closely, you can adjust your strategy and stay ahead of the pack,” he said.
Despite this, he warned not to be overconfident. “We live in a new era,” Witt said. “As conflicts in Ukraine, the Middle East and South Asia continue and increasingly authoritarian behavior around the world, the era of long-term planning is over.”
