A Guangzhou-based arcade game manufacturer, iFun, is facing challenges due to new US tariffs. The company, which once relied on American customers for a large share of its business, is now shifting its focus to other markets as the trade war with the US intensifies. Business owner Bin Zhang remains hopeful that the tariffs will be rolled back soon, but in the meantime, his company is adapting to new global opportunities.
The Strain of New US Tariffs
Bin Zhang, the 36-year-old owner of iFun, has been in the business of providing fun for people around the world. His company, located in the bustling manufacturing hub of Guangzhou, specializes in arcade game machines, soft playgrounds, and trampoline parks. iFun’s products are popular in malls and entertainment centers worldwide, with orders ranging from $50,000 to $500,000.
However, Zhang’s business has recently been hit hard by US President Donald Trump’s new tariffs. This year, the United States imposed a 145% tariff on imports from China, forcing many of Zhang’s US customers to delay or cancel their orders. Previously, the US made up around a fifth of iFun’s sales, making this a significant blow for the company.
Canton Fair: A Showcase of Resilience
Zhang’s company is one of the many exhibitors at the Canton Fair, China’s largest trade event, held in Guangzhou. The fair, which runs through May 5, sees over 30,000 exhibitors showcasing their goods. Despite the challenges, Zhang remains optimistic, like many other entrepreneurs in Guangzhou. He hopes that the US will eventually roll back the tariffs before they cause lasting damage to Chinese manufacturers.
“I’m confident we can double our $17-million business in the next five years,” Zhang said. His strategy includes exploring new markets in regions like Mexico, Canada, and South America, which may provide new opportunities as the US market becomes more difficult to access.
The Factory: A Hub of Creativity and Innovation
Inside iFun’s massive factory, which spans more than a football field, workers are busy assembling products for the next batch of orders. The colorful factory is a hive of activity, with employees putting together arcade game machines, toddler playsets, ice cream makers, and popcorn machines. One area of the factory is dedicated to testing arcade games, including air hockey, basketball shooting, and a laser cannon game, all designed to entertain.
Despite the looming trade war, iFun’s factory remains a beacon of creativity and innovation, with products ranging from fun-filled arcade games to interactive play areas for children. “It’s just for fun,” Zhang says with a smile, pointing to a box labeled “Super Time Machine: Made in China.”
The Challenge of Supply Chain Disruptions
One of the major reasons iFun thrives in Guangzhou is its proximity to a well-established supply chain. About 90% of the materials Zhang’s company needs are sourced from nearby suppliers, allowing for fast production and efficient shipping. Zhang believes that relocating operations abroad would be costly and slow, even with potential tariff savings.
“The speed of our operations here is unmatched. We simply can’t get that same efficiency anywhere else,” Zhang explained. He plans to expand his business by building another factory in Guangdong, further solidifying his commitment to the region.
Optimism Amid Uncertainty
Like many of his peers in the Chinese manufacturing sector, Zhang is hopeful that the US will eventually reconsider the tariffs. “Our people have spoken with many customers in the US,” he said. “There’s always this thought: maybe today, he imposes high tariffs, but maybe tomorrow, they’ll be canceled.”
Despite the challenges, Zhang remains confident in his company’s ability to adapt. While the US remains an important market, iFun is expanding its reach to other countries, ensuring the business remains strong, no matter what happens with the ongoing trade war.
