【By Observer Net, Zhang Jingjuan】"The level of skills and professional knowledge possessed by Chinese workers in different industries far exceeds that of workers in other countries," said Haley Pavone, founder of the U.S. shoe company "Pashion Footwear" based in California.

According to Bloomberg, on October 10th, under the heavy pressure of President Trump's tariffs, Pavone had tried to produce outside China, but it proved unfeasible. Therefore, even though the tariff on some products surged to an astonishing 190% in April, she has decided to continue cooperating with existing Chinese suppliers.

The report said that in May this year, when a $80,000 tariff bill was placed on the table, 29-year-old Pavone made a choice many small business owners might make: freezing the recruitment plan and adding fees during online checkout to offset costs.

"Pashion Footwear" imports shoes from China, but after trying, it did not move production out of China.

After Trump returned to the White House and increased tariffs on Chinese goods, Pavone visited factories in Brazil, India, and Vietnam.

But she quickly encountered problems: these factories required higher minimum order quantities, and the workers lacked training, especially when making her specialty shoes that can be converted from flat shoes to high heels. Even if she could find factories with skilled workers, they still needed to import key components from China.

Pavone asked a factory in Vietnam to trial-produce a lace-up high heel, but found their craftsmanship to be rough. Moreover, moving the order to Vietnam would require at least $50,000 in initial costs.

Therefore, even though the tariff on some products surged to an astonishing 190% in April, Pavone still decided to continue cooperating with existing suppliers.

Moreover, the U.S. tariff on Vietnamese goods is close to that on Chinese goods, which weakens the motivation for companies to shift production from China.

Pavone “Pashion Footwear”

"No country can match China. The level of skills and professional knowledge displayed by the workforce there in these different industries far exceeds that of workers in other countries," Pavone said.

The report pointed out that Pavone's dilemma is a problem faced by enterprises worldwide that rely on American consumers and Chinese manufacturers. Data from the U.S. business consulting firm Rhodium Group shows that since 2017, the transfer of production capacity from China has mainly focused on the textile, electronics, automotive, and assembly industries. However, even in these sectors, companies remain highly dependent on raw materials provided by Chinese enterprises.

Analysts including Agatha Kratz wrote in a 2025 report: "No country can replicate China's highly optimized production ecosystem on a large scale, so the speed at which companies are shifting to other production centers remains slow."

According to the report, the actual scale of production transfer may be lower than what public data indicates. A team of scholars from institutions such as the World Bank and the International Monetary Fund found that when accounting for the surge in "minimum threshold" goods (imported goods valued below $800 that can be exempt from duties) and the transshipment of Chinese goods through third countries, the reduction in U.S. dependence on China is a quarter less than expected — only a 6 percentage point decrease since 2017, rather than 8 percentage points.

Recent trade data also show that China's exports to the U.S. have declined significantly, while exports to Southeast Asia have surged. At the same time, exports from Southeast Asia to the U.S. have also risen to record levels, indicating that the U.S. market still has a huge demand for goods and components from China.

Heel-changing high heels “Pashion Footwear”

The previous Trump administration imposed additional tariffs on Chinese products as high as 145%, and for some products already subject to the original tariffs, the rate reached about 190%.

Pavone's shoes retail for about $200 per pair, covering multiple price ranges. Although tariffs are eroding profits, Pavone said the company is still profitable at the moment.

For Pavone, it is difficult to find production facilities that can match the factories she has been working with in Dongguan, Guangdong, for nearly ten years. Dongguan is a major hub for the global textile industry, and the parts she needs, such as plastics, metals, and fabrics, are delivered through a precisely calibrated supply chain, with most raw materials available nearby. She can also place small orders to test new designs, meaning lower financial risk.

Currently, Pavone is still considering the best path for the company's development.

"It's really bad, very bad. I don't know how to proceed with work," Pavone said. "This should have been a glorious year, but now it has become a test of the company's survival."

This article is an exclusive piece from Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7525660363367416346/

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