Chinese manufacturers are now raising prices for their products for American customers due to the rise in oil prices following the conflict in Iran and the closure of the Strait of Hormuz.
Devi Wei, founder of Huijin Trade, said the price of paddles and pickleball balls it produces has increased by up to 20% because the plastic material used is made from oil, which is now expensive due to the disruption of shipping through the Strait of Hormuz.
Wei added that if the conflict continues, prices could rise even more.
In addition, James Li, a scarf manufacturer, has raised the prices of his products by 5%, while Wang Mingming, manager of toy company Jinming Gifts, is stockpiling PVC in anticipation of further price increases.
Cameron Johnson, a supply chain expert from Shanghai, predicts that if the crisis continues, the automotive and medical sectors may be given priority in obtaining raw materials, while other industries are at risk of shortages.
The impact is also felt by consumers, as more money is spent on oil, which limits purchasing power for other goods.
Manufacturers have warned that product prices could continue to rise if the conflict in the Middle East does not subside soon.
