Totally get it. There's a line between a country being good at making a product through "natural" causes (having a climate to grow grapes for wine) and the government subsidizing the production of wine because they want a wine growing industry. Where that line is depends on a lot of actors, but some things fall on one side of the line and others on the other.
However, for the end consumer in the importing country, they win if the government of the exporting industry wants to subsidize wine production. The consumer gets cheaper wine.
Now the argument for fair trade is that the local producers of wine will be hurt. And I get that (especially when you are talking about job losses and/or loss of strategic capability around food production or technology).
But overall the consumer in the importing country wins. If China wants to give dollar bills to the American consumer for umbrellas, why shouldn't the consumer take them?
I understand where you are coming from, but markets are created by the rules of the government. Some governments (The Netherlands, CA) say that selling marijuana is OK. Some say that it is ok for some people to buy marijuana (medical) and others can't. Some US states say that no one can buy marijuana. Which is the "natural" market?
I understand that you are saying that the Chinese government is causing distortions and there is a fairer way to "trade" but that's something for the Chinese state and political actors to decide. This is the same as the way that the USA has decided that trucks are different than cars and should have a different set of import limitations--in both cases this is a political consideration.
It likely will take some event, some slack, some inelegance for a business or entrepreneur to notice that the delta between that $5/umbrella and where they can figure out how to deliver it for $4 is worth spending time and attention on.
Markets are not perfectly efficient. Markets are perfectly imperfect.
You should start writing speeches for Theresa May. This is the kind of guff she regularly comes out with.
Is obviously some kind of retro cyberpunk-themed text-based multiplayer D&D clone. So, personally, I try not to directly piss off dang, who appears to currently be the dungeonmaster here, just in case I then get eaten by a grue.
So they are more likely selling at $5.15 (or some other higher number), which means that the US consumer pays an extra 15 cents per umbrella.
That 15 cents is additional and what people refer to as a "tax", though it isn't a traditionally levied tax.