Mainland Chinese exporters expressed optimism this week about a potential increase in orders from the United States following a recent agreement to reduce tariffs on approximately US$30 billion worth of goods. The anticipated tariff cuts are expected to prompt a resurgence in activity at factories that have been operating below capacity.

The positive sentiment was evident among participants at the ongoing Canton Fair, China’s largest and oldest trade exhibition, which hosts more than 32,000 exhibitors and over 210,000 preregistered foreign buyers. The event, spanning nearly three weeks, is closely watched as an indicator of the health of China’s export sector. Many manufacturers at the fair forecast a double-digit percentage growth in full-year orders from the U.S. market compared to last year, although some also noted persistent challenges in the European market.

On the opening day of the fair, a steady flow of American buyers was reported, reinforcing exporters’ expectations for stronger trade ties. The improved outlook follows President Xi Jinping’s recent visit to the United States, after which both governments announced terms for the bilateral Board of Trade to oversee the phased rollback of tariffs.

According to the Ministry of Commerce, most of the Chinese goods subject to the tariff reductions are everyday consumer products. More than 90 percent of these items will be reinstated to standard most-favored-nation tariff rates upon entry into the U.S., with all additional tariffs being removed.

The easing of trade tensions is seen by many exporters as a positive development that could help revive demand from American buyers and contribute to a more robust export performance for the remainder of the year. However, it comes amid ongoing uncertainty in other markets, notably in Europe, which continues to present headwinds for China’s trade sector.