Challenges for iFun Under New Tariffs

By Ellen Zhang and Kevin Krolicki

GUANGZHOU, China (Reuters) – Bin Zhang is in the business of fun, but his job has become less so thanks to U.S. President Donald Trump.

Zhang, 36, runs iFun, a company with global customers and order sizes ranging from $50,000 to $500,000, supplying everything needed for arcades, children’s play areas, and trampoline parks.

Until recently, a fifth of iFun’s sales came from the United States. However, Trump’s new tariffs of 145% on Chinese imports have caused U.S. customers to pause their orders.

iFun is among over 30,000 exhibitors at the Canton Fair in Guangzhou, China’s largest trade fair, running through May 5. Zhang is optimistic, like many Guangzhou business owners, that Trump may roll back these tariffs before significant damage is done to the Chinese economy.

If tariffs remain, Zhang believes he can double his $17 million business in five years by venturing into new markets, such as Mexico, Canada, or South America. “We can move our time and energy to other markets,” he stated during an interview at his brightly painted factory.

His factory, larger than a football field, employs 150 workers who assemble colorful, vinyl-covered play equipment, while other employees test arcade games like air hockey and basketball.

With 90% of his material source nearby, Zhang plans to build another facility in Guangdong, believing that no offshore location can match the efficiency of his current operations.

Zhang shares the sentiment of many Chinese entrepreneurs, confidently suggesting that President Trump might reconsider the high tariffs. “Maybe he puts (on) such high tariffs today, maybe tomorrow he will cancel,” Zhang remarked.