The emails started pouring in on April 9, the day U.S. President Donald Trump¡¯s 145% tariff on Chinese imports took effect. Clients were canceling orders for toys from Huntar Company¡¯s factory in Guangdong province, China.

But Huntar CEO Jason Cheung, 45, had already halted production at the 55,700-square-meter facility in the city of Shaoguan. He saw the tariff for what it was: an existential threat to his company, which manufactures educational toys bound for the shelves of Walmart and Target, such as Learning Resources¡¯ Numberblocks, which help teach kids math.

¡°I needed to start saving money as soon as possible,¡± Cheung said.