<h1>Tariffs escalate, prompting exporters to exit markets and disrupt supply chains and employment and force order cancellations.</h1> China's retaliatory tariff escalation has led exporters to face abrupt order cancellations, halted production, and potential market exit rather than absorb prohibitive levies; these effects threaten profitability, cash flow from deposits, and employment, and prompt rerouting of trade through intermediaries or scaling down production.