The tariffs are here. From Marketplace, I'm Sabri Beneshore in for David Brancaccio. A 25% import tax on almost everything we buy from Canada and Mexico. New tariffs on China doubled to 20%. These all start today per President Donald Trump's orders. All three countries there have announced

retaliatory tariffs. Economists believe this will slow economic growth in the U.S. and lead at least

in the short term to more inflation. Meanwhile, trading partners are adapting. Our China correspondent,

Jennifer Pack, spoke to some Chinese manufacturers at an import-export trade show in Shanghai and sent

this report. This annual import and export trade show in Shanghai draws around 4,000 exhibitors.

Hair clips in red, white, and blue, the colors of the American flag, hang at a booth.

Manufacturer Xi Yan Dren says hair accessories were slapped with an extra 10% tariff under Donald Trump's first term.

Her business survived by lowering prices.

Our profit margins were better during the first trade war.

But with round after round of additional tariffs, it's kind of hard to sustain a business.

Meantime, costs are going up, says Alex 2 with Hengzhou-Haushis shoes.

The firm manufactures rubber boots for the likes of Disney and Walmart.

Our clients asked us to lower the price because their costs have increased, but we're doing

mid-to-high-range rubber boots.

The raw material cost is rising,

so our prices are under a lot of pressure. Paper napkin manufacturer Huang Shouhao says his clients

also asked him to share the burden of additional tariffs, but he refused. He says his products

are still getting to the U.S., but in an indirect way.

We've seen sales to Vietnam increase, and then they are actually exported to the U.S.

They're just rerouting through Vietnam.

This way, Chinese exporters and American importers try to mask the product's origins and dodge U.S. tariffs.

Christmas tree manufacturer Shanxi Longstar keeps its cost down by controlling its entire supply chain,

...