“The China-U.S. trade war is going to destroy the U.S. economy. You know most of the things we buy are made in China, right? Clothes, electronics, and... the dildos my grandfather makes in Guangdong.”
This line from an American late-night show might sound like a joke, but it actually highlights the real supply chain dilemma we are facing today. In today’s world of highly integrated globalization, Chinese sex toys and other sex stuff are everywhere. They have infiltrated American lives, from clothing and food to work and even intimate products like rabbit vibrators, anal toys, butt plugs, and cock rings.
With the spring of 2025, the Trump administration reignites a tariff storm, hitting the export industry like a thunderclap. Amazon sellers in the U.S., Tesla manufacturers, Shenzhen factories, and Los Angeles ports, all face unavoidable disruption. The towering wall of tariff policies has caused cracks in the global supply chain, especially for sex toys and related products that rely on international trade. This includes the growing trade deficit. It arises when U.S. manufacturers and businesses rely heavily on Chinese-made products, particularly in the adult toy sector.
Amazon Cancels Orders — The Darkest Moment for Cross-border Sellers
According to Bloomberg and Reuters, Amazon has recently canceled a large number of orders from China and other Asian countries. These orders, covering items like scooters, beach chairs, and air conditioners, were canceled without prior notice. Many sellers only discovered their orders had been canceled when the goods couldn’t be shipped. One small seller, who mainly sells beach chairs and outdoor products, revealed that all their inventory orders were suddenly canceled, ruining their summer sales plans.
Even worse, some sellers have chosen to increase prices by 30% to compensate for the tariff-induced losses. However, customer buying power has significantly decreased, leading to severe stockpile issues. Despite higher prices, inventory remained stagnant. Sellers are now looking for alternatives in markets that offer better predictability. Some are even considering shifting away from the United States. They are exploring new markets in Southeast Asia or the Middle East.
Wang Xing, president of the Shenzhen Cross-border E-commerce Association, pointed out that more and more Amazon sellers are considering leaving the U.S. market. They are turning to emerging markets in Southeast Asia, the Middle East, or even returning to the Chinese domestic market. Behind this shift is the instability of U.S. tariff policies, the platform’s “order cancellations,” and declining demand in the U.S. and Europe. Without reliable customer service from platforms like Amazon, these sellers face even more challenges in maintaining their businesses.
Tesla’s Dilemma — Disrupting Global Manufacturing
Musk and Trump were once close allies. On New Year’s Eve of 2024, they were photographed dancing and drinking together, showing mutual understanding. But a few months later, Trump’s policies took a sharp turn. The electric vehicle subsidy program was canceled, and auto parts tariffs were raised to 72.5%, directly impacting Tesla’s global supply chain.
Even more ironically, Trump’s chief trade advisor, Navarro, publicly mocked Tesla, calling it “just an assembly plant,” belittling Tesla’s manufacturing capabilities. Musk strongly rebuked this on social media, calling Navarro an “idiot.” However, no matter how much Musk fought back, the reality of tariff policies remained unchanged. Tesla’s troubles continued:
Reliance on Chinese Supply Chain
More than 70% of Tesla’s car parts, including batteries, die-cast parts, and interior components, come from Chinese suppliers. Particularly, lithium battery materials and high-precision die-cast parts made in China are nearly irreplaceable globally. These components are crucial for Tesla’s production efficiency and maintaining its profit margins. As tariffs were imposed sharply, Tesla faced immense cost pressure.
Failed Plans for Factories in Mexico and Thailand
To avoid high tariffs, Tesla planned to move some production lines to Mexico and Thailand, using the USMCA (United States-Mexico-Canada Agreement) to achieve lower tariff rates. However, reality struck hard:
- The Mexican factory has yet to start construction. Despite Musk’s promise that production would begin by Q2 2025, no real progress has been made.
- The Thai factory encountered even higher tariffs. The U.S. government imposed tariffs on Thai products that are 2% higher than those on Chinese products. This means what was supposed to reduce costs became an unprofitable choice.
Disappointment and Pressure from Chinese Suppliers
A Chinese supplier who provides parts to Tesla said: “We were willing to share the tariff burden with Tesla before, but now it’s impossible. If we continue to cut costs, we can’t maintain reasonable profits, or even survive.” This supplier also revealed that many Chinese suppliers are facing rising tariffs and production costs. As a result, they have started to shift to other major clients, reducing their priority in working with Tesla. This not only affects Tesla’s supply chain stability but also exposes the fragility of U.S. manufacturing in the face of global supply chains.
Tesla’s dilemma is not accidental. It is a direct result of the China-U.S. trade friction. Despite Musk’s creativity pushing Tesla forward, U.S. adult toy manufacturers face similar challenges. Increased tariffs are affecting global supply chains, particularly for toys for women.
U.S. Entrepreneurs’ Despair — “What China Gives, the U.S. Can’t”
Erica Campbell, a U.S. entrepreneur, recently expressed her despair on social media: “We are scared and worried. Our business could disappear any day.” This entrepreneur has always relied on Chinese sex stuff factories for flexible, small-batch, customized production to support her business. Five years ago, after attending the Canton Fair, she decided to lock her production lines in China because of the high quality and efficiency Chinese supply chains offered.
However, in the spring of 2025, as Trump raised tariffs to 145%, Erica’s business faced unprecedented crisis. She said: “We could tolerate tariffs of 10% to 20%, but no one can bear 145%.” To control costs, Erica had no choice but to pause some mass production and reduce orders, concentrating funds and resources on smaller-scale production.
Erica also pointed out that U.S. manufacturers cannot provide the same production capacity as China: “Even U.S. factories rely on raw materials from abroad. “Why should I pay more for a ‘local label’?” Her dissatisfaction reflects the sentiment of most small business owners and importers in the U.S. Even American adult toy manufacturers cannot fully detach from global supply chains. This is especially true when other countries offer irreplaceable advantages in materials, processes, and production efficiency.”
China’s Response: Dual Policy and Platform Action
Faced with increasing U.S. tariff pressure, the Chinese government and leading platforms quickly responded with a series of policy adjustments and market incentives to stabilize the domestic economy and provide strong support to export companies.
China’s Countermeasures: Tariff and Trade Barrier Retaliation
Over the past few years, China has repeatedly retaliated against U.S. tariff hikes to protect its economy and maintain global supply chain stability:
- 2018 Trade War Beginning: When the U.S. imposed a 25% tariff on $50 billion of Chinese goods, China retaliated with tariffs on U.S. soybeans, airplanes, and cars, among others. This move showed that China would not bow to trade pressure and defended its economic sovereignty.
- 2020 U.S. Unilateral Tariffs: When the Trump administration escalated tariffs, China responded by imposing tariffs on U.S. high-tech products like chips, medicines, and auto parts. This not only countered tariff pressure but also helped stabilize China’s domestic supply chain.
- 2021 Tariff Structure Adjustment: As the U.S. escalated tariffs, China again reduced tariffs on some U.S. imports and opened more sectors to foreign trade, especially in healthcare, consumer goods, and energy.
- 2025 Latest Countermeasure: After the U.S. raised tariffs again in 2025, China retaliated by imposing tariffs of up to 25% on certain U.S. consumer and tech products, including high-tech components, agricultural products, and luxury goods.
JD’s “Foreign Trade to Domestic Sales” Plan
JD announced that it will purchase no less than 200 billion RMB of foreign trade products for domestic sales in the coming year. The company has also set up a “Foreign Trade Premium” section to support these goods with exclusive traffic and precise recommendations.
Douyin and Freshippo’s “Green Channels”
To help more small businesses overcome export difficulties, Douyin and Freshippo launched “green channels” for entry, providing 24-hour dedicated support, traffic help, and supply chain services.
Domestic Big Cycle: Strategic Response and Market Incentives
This series of policies reflects China’s quick response to external uncertainties. The “Domestic Big Cycle” strategy not only supports export companies’ transition to domestic sales but also injects long-term growth into the national economy.
Exemption List, System Failures, and Tariff Limits
As pressure reached its peak, the U.S. Customs and Border Protection (CBP) system was reported to have malfunctioned, causing many importers to be unable to apply for exemptions in time. A new exemption list quietly leaked, but the criteria were vague, and some sensitive categories were still excluded. Meanwhile, the chaos in U.S. trade policies increased the risk of a breakdown in the trade chain, especially with the 72.5% tariffs hanging over many businesses, leaving them in a difficult situation.
Political Motives Behind Tariff Adjustments
However, this “drama” seems to have a twist. Under pressure from a series of strong countermeasures from China and the global supply chain crisis, the Trump administration began to show signs of loosening up. The release of the exemption list and the tariff system failure appeared to solve the “crisis” in the short term, but the real motive was to allow the U.S. to continue importing necessary production materials from China. These measures were designed to enable U.S. businesses to clear customs smoothly rather than get stuck due to high tariffs.
The Empty Gestures of Tariff Measures
At the same time, some of Trump’s tariff measures were actually “empty gestures.” These actions were more about maintaining political face in the short term than genuinely addressing the trade imbalance. The U.S. government’s decisions were not based on rational considerations but rather on political pressures within the context of the China-U.S. trade conflict, allowing Trump’s administration to “save face.” The deeper reason behind this is that the U.S. economic system and global supply chain could not bear the far-reaching impacts of the tariff policies.
The Breaking Point of U.S. Tariff Policies
The failure of the tariff system not only created operational challenges for U.S. importers but also highlighted the fragility and uncertainty of U.S. tariff policies. All of this is a direct result of the repeated tariff hikes over the past few months, and it has become clear that the U.S. government has reached the “limits of industry” — further increasing tariffs will only raise production costs for U.S. companies and, in turn, threaten the stability of the entire U.S. economy.
The Road Ahead: Trade War’s Potential End
In this situation, the Trump administration’s policies appear to be gradually loosening. Through the exemption list and loopholes in the tariff system, the government has temporarily eased the pressure on businesses and avoided a trade collapse. All of this may signal that the escalation of the trade war is coming to an end. The U.S. government has gradually realized that while tariffs may win political points, they cannot solve the problem of supply chain disruption. Future trade negotiations may involve more compromises, and the global economy could enter a more stable period.
From a Pencil to Global Cooperation
Milton Friedman once said in a classic economic speech, “A simple pencil’s raw materials come from all around the world. No single country can produce it independently.”
“If even a pencil requires global cooperation, how can we build factories? How can we create true prosperity?”
This quote is still a symbol of the principle of free trade. It shows that international trade is the path to mutual success for all nations. Just as a pencil needs a global supply chain, so do the goods we create.
Gaia in Love’s Global Vision and Values
As a globally-operated brand, Gaia in Love deeply understands the core significance of this economic principle. We are committed to providing innovative sexual wellness technology products for women worldwide, and this is all supported by the global supply chain. From efficient manufacturing factories in China to distribution channels in Europe and North America, every link relies on the power of global cooperation.
We firmly believe that free trade and global cooperation are the fundamental drivers of global economic growth. Despite the pressures of tariffs and trade barriers in the current trade environment, we still believe that only through cross-border cooperation and open markets can we continue to drive innovation, improve quality, and offer more high-quality choices to customers worldwide.
As Friedman said, “If even a pencil requires global cooperation, how can we create a more prosperous and fair world?” This is the philosophy that Gaia in Love has always adhered to. We believe that globalization and cooperation will continue to drive our innovation, help us overcome the challenges brought by trade friction, and bring more happiness and self-discovery to women around the world.
