search-icon-hover
Home > News List > Article
Trade War Tsunami: How a US Toy Maker's Chinese Factory Fights for Survival

The floodgates opened on April 9. As President Trump's punishing 145% tariff on Chinese imports took effect, cancellation notices began flooding Jason Cheung's inbox. Clients were abandoning orders from Huntar Company's Guangdong factory - the lifeline of this second-generation family business.

Cheung, the 45-year-old CEO, had anticipated the storm. His sprawling 600,000-square-foot facility in Shaoguan stood eerily quiet that morning. The educational toys destined for Walmart and Target shelves - like math-teaching Numberblocks - would remain unfinished.

"This wasn't just bad news," Cheung recalls, "it was an extinction-level event." Within weeks, he slashed production by two-thirds, laid off 130 workers from his 400-person staff, and cut wages for those remaining. Now he races against time to relocate operations to Vietnam before his father's legacy company collapses.

The clock shows one month remaining.

Toy factory workers in China

A Business Caught Between Superpowers

Huntar embodies the brutal paradox of modern trade wars. Though manufacturing in China makes them Trump's theoretical villain - "the Chinese factory stealing American jobs" - they're equally the small US business tariffs were meant to protect.

The company employs fifteen Americans at its California headquarters while supporting hundreds of Chinese families through its Guangdong facility. "We're getting crushed from both directions," Cheung explains during an interview at his Union City office beneath framed photos of his father's early days as an immigrant entrepreneur.

Jason Cheung at his office

The Impossible Equation

Relocating presents a logistical nightmare:

  • Equipment: Thirty injection molding machines (each weighing several tons) would cost over $1 million to replace

  • Talent: Vietnam lacks experienced toy manufacturing specialists

  • Sustainability: Their solar-powered facility can't be replicated quickly elsewhere

  • Timetable: Quality control approvals alone require months they don't have

"I refresh my 'tariff' Google search five or six times a day," admits Cheung between calls with Vietnamese suppliers.

A Family Legacy Under Threat

The crisis threatens four decades of history that began when Cheung's father escaped communist China by swimming across the Shenzhen River to Hong Kong before eventually settling in San Francisco as a janitor supplementing income by selling goods at flea markets where young Jason often accompanied him ("bored out of my mind").

"That desk you see? My dad started our business there when we could barely afford furniture," says Cheung pointing toward what appears as ordinary office furniture but represents their origin story—a lucky charm now facing its greatest test. "They don’t make entrepreneurs like him anymore." - Rick Woldenberg (CEO Learning Resources)

Crisis Management Mode Activated

Challenge

Response Strategy

$750K In Canceled Orders

Absorb losses while negotiating partial payments

Vietnam Relocation Rush

Prioritize proprietary brand production over third-party contracts if forced into triage mode ) ) ) )) )) ))) )))) ))))) )))))) *High Risk* : Requires abandoning core revenue stream(s) < / font>) )) )) )) )) )( (( ((( (((( ((((( (((((( ((((((( (((((((( ((((((((() . . . .. ... .... ..... ...... ....... ........ .........) ........... ...........) .............. ............... ...............................................................................................................................................................................................................................................................................................................................................................................................................................................

Read More

Advertisement

Advertisement

Recommended for You
'Lifetime Free’ credit card promised zero cost, UAE resident still got charged
'Lifetime Free’ credit card promised zero cost, UAE resident still got charged
uSMART SG lets you earn up to 8.88% interest on your ang bao money this CNY
uSMART SG lets you earn up to 8.88% interest on your ang bao money this CNY
It's Chinese New Year again, and that fat stash of ang bao money feels like it's permission to live a little larger, at least for the time being. While some of us are taking our cash straight to our favourite fancy restaurant, others are looking to strike gold at the nearest mahjong table.
Grocery expenses increased the most in past year: Case Budget 2026 poll
Grocery expenses increased the most in past year: Case Budget 2026 poll
Have you found yourself watching the pennies more closely?

Advertisement

Advertisement

Gold prices in Dubai jump over Dh9 per gram amid Rising Middle East Tensions
Gold prices in Dubai jump over Dh9 per gram amid Rising Middle East Tensions
Retirement Planning for Women: Why a Personal Fund Can Change Your Future
Retirement Planning for Women: Why a Personal Fund Can Change Your Future
Investor reactions to Trump's speech on Iran war
Investor reactions to Trump's speech on Iran war
US President Donald Trump told the nation in a televised speech on Wednesday (April 1) night that the US military had nearly completed the goals it had set out to accomplish in its war with Iran and that the conflict would soon be ending.
Choosing Between New Launch and Resale Condo in Tampines
Choosing Between New Launch and Resale Condo in Tampines
```html
The Unusual Sale of a One-Seventh Stake in 5 Oxley Rise, District 9
The Unusual Sale of a One-Seventh Stake in 5 Oxley Rise, District 9
You may have heard of a 99-1 property ownership arrangement, but have you ever considered owning a one-seventh share of a sprawling bungalow in prime District 9?
Stocks Selloff Deepens as Dollar Strengthens Amid US and Israeli Strikes on Iran
Stocks Selloff Deepens as Dollar Strengthens Amid US and Israeli Strikes on Iran
A selloff in stocks deepened on Tuesday (March 3) and the dollar strengthened as investors considered the implications of US and Israeli strikes on Iran on energy prices and the global economy.

Advertisement

Advertisement

Market Reactions to Trump's Remarks on Iran Conflict
Market Reactions to Trump's Remarks on Iran Conflict
SINGAPORE — On Thursday (April 2), stocks experienced a decline, the dollar strengthened, and oil prices increased following US President Donald Trump's announcement that Washington's "core strategic objectives" in the Iran conflict are close to completion. However, he did not provide a definitive timeline for the conclusion of the conflict.
OCBC posts 3% rise in Q4 profit to $1.75b, declares special dividend
OCBC posts 3% rise in Q4 profit to $1.75b, declares special dividend
Singapore's Oversea-Chinese Banking Corp (OCBC) delivered strong profits of $1.74 billion in the fourth quarter of 2025, and announced a final ordinary dividend of 42 cents per share, along with a special dividend of 16 cents per share.
Singapore Airlines sees record $5.5b revenue in Q3 but profit falls 69%
Singapore Airlines sees record $5.5b revenue in Q3 but profit falls 69%
National carrier Singapore Airlines (SIA) saw a 68.9 per cent drop in its net profit in the third-quarter of 2025/2026, it reported after markets closed on Tuesday (Feb 24).
Singapore REITs: Are they worth buying now?
Singapore REITs: Are they worth buying now?
HDB Loan vs Bank Loan: What HDB Buyers Should Know in 2026
HDB Loan vs Bank Loan: What HDB Buyers Should Know in 2026
Market Steady Ahead of Trump's Address on Gulf War Ceasefire
Market Steady Ahead of Trump's Address on Gulf War Ceasefire
HONG KONG — Major currencies remained stable in light trading on Thursday (April 2), as investors prepared for a crucial televised speech from US President Donald Trump, which is anticipated to provide insights into a potential ceasefire in the Gulf conflict.
At $1.7m, 5-room loft flat in Queenstown breaks national HDB resale record
At $1.7m, 5-room loft flat in Queenstown breaks national HDB resale record
Just two months into 2026, Singapore has already set a new benchmark for HDB resale prices. In early February, a 5-room loft at Block 92 Dawson Road was sold for $1.7 million, officially becoming the highest transacted HDB flat in the country to date.
Escalating Middle East Conflict Leads to Rise in Petrol Prices in Singapore
Escalating Middle East Conflict Leads to Rise in Petrol Prices in Singapore
Prices of petrol in Singapore have significantly increased due to the escalating conflict in the Middle East, which has led to the closure of a crucial channel for oil supplies with no resolution in sight.
Gold swings sharply as tensions and strong dollar rattle markets
Gold swings sharply as tensions and strong dollar rattle markets
Best outdoor Ramadan decorations
Best outdoor Ramadan decorations
UAE flight disruptions: A hotel in Dubai promises free stay for stranded travellers
UAE flight disruptions: A hotel in Dubai promises free stay for stranded travellers

Advertisement

Popularity Rankings
Lost Your Job in Dubai? How to Exit Your Rental Contract Without Paying Penalties
Lost Your Job in Dubai? How to Exit Your Rental Contract Without Paying Penalties
Private housing prices rise in Q1, led by suburban condo sales
Overall, the market is shifting into a more balanced phase: price growth continues, but at a slower pace; demand remains, but is more selective; and future supply is increasing, which could help keep long-term affordability in check.
Private housing prices rise in Q1, led by suburban condo sales
Dubai gold prices see steady gains as Middle East tensions linger
Dubai gold prices see steady gains as Middle East tensions linger
Parkinson’s rising among younger UAE patients; doctors explain key symptom differences
Parkinson’s rising among younger UAE patients; doctors explain key symptom differences
Legal Challenges for Property Buyers Seeking to Invoke Force Majeure in Dubai
He also emphasized that seeking early legal counsel is the most prudent course of action, warning that premature steps can sometimes lead to more issues than they resolve.
Legal Challenges for Property Buyers Seeking to Invoke Force Majeure in Dubai
Nearly $1b more support for Singaporeans as costs rise: Govt may step in further
Nearly $1b more support for Singaporeans as costs rise: Govt may step in further
Land Rover Defender D350 facelift first drive review: A family SUV for every terrain
Land Rover Defender D350 facelift first drive review: A family SUV for every terrain
Global Oil Supply Disruption: Over $50 Billion Lost Due to Iran Conflict
LONDON — Analysts and calculations from Reuters indicate that the world has lost more than US$50 billion (S$64 billion) in crude oil production since the Iran conflict began nearly 50 days ago, with the repercussions likely to last for months and even years.
Global Oil Supply Disruption: Over $50 Billion Lost Due to Iran Conflict
Air New Zealand Introduces Skynest Sleep Pods for Long-Haul Economy Flights
WELLINGTON — For many travelers, getting a good night's sleep on a long-haul economy flight has always seemed like a distant dream.
Air New Zealand Introduces Skynest Sleep Pods for Long-Haul Economy Flights
RAKBank Achieves Record Quarterly Profit in Q1 2026
RAKBank announced on Monday its strongest quarterly performance ever in the first three months of 2026, reporting a profit after tax of Dh1 billion, a 43 percent increase year-on-year, driven by growth in its balance sheet, expanding margins, and a one-time gain from an asset sale.
RAKBank Achieves Record Quarterly Profit in Q1 2026
How to choose a renovation company in Singapore
The most important factors to focus on—right at the core of the decision—are proper licensing, proven experience, transparent quotations, clear contracts, and reliable communication. These elements determine whether your renovation journey becomes a smooth transformation or a costly lesson.
How to choose a renovation company in Singapore
Dubai Restaurant Week returns: 125+ restaurants, Dh125 menus to try
Dubai Restaurant Week returns: 125+ restaurants, Dh125 menus to try
Dubai deals: 50% off dining, staycations & free extras
Dubai deals: 50% off dining, staycations & free extras
How to get free parking in Dubai
How to get free parking in Dubai
Two Teenage Schoolgirls Missing in Pasir Ris Since April 27
Two Teenage Schoolgirls Missing in Pasir Ris Since April 27
Vede janelas e portas com fita simples e veja quanto custa reduzir o frio dentro de casa sem aumentar a conta de luz
Vede janelas e portas com fita simples e veja quanto custa reduzir o frio dentro de casa sem aumentar a conta de luz
Aion UT review: A compact hatchback big on space, charms and value
Aion UT review: A compact hatchback big on space, charms and value
UAE Summer Survival Guide: Best Hours to Go Outdoors and Avoid Extreme Heat
UAE Summer Survival Guide: Best Hours to Go Outdoors and Avoid Extreme Heat
HDB resale prices just fell for the first time since 2019 — is this the start of a bigger shift?
HDB resale prices just fell for the first time since 2019 — is this the start of a bigger shift?
How to Lower Your Rent in Dubai: Smart Negotiation Tips That Actually Work
How to Lower Your Rent in Dubai: Smart Negotiation Tips That Actually Work

Advertisement