Nearly two-thirds of US firms who responded to a survey by American chambers of commerce in China reported that the waves of new tariffs have harmed their business.
US companies in China say they are already feeling the pain from the trade war.
In a survey by two American chambers of commerce in China, nearly two-thirds of US firms who responded said the waves of new tariffs have harmed their business.
The United States and China have so far slapped tariffs of 25% on more than $50 billion worth of each other’s exports and more are in the pipeline. President Donald Trump said last week that new tariffs on $200 billion of Chinese goods could go into effect « very soon » and warned that an even bigger raft of measures is in the works.
« Tariffs are already negatively impacting US companies and the imposition of a proposed $200 billion tranche will bring a lot more pain, » Eric Zheng, chairman of the American Chamber of Commerce in Shanghai, said Thursday in a statement. « The US administration will be hurting the companies it should be helping. »
The damage from the trade war to US businesses in China includes lost profits, higher manufacturing costs and lower demand for their products, according to the survey of more than 430 companies in industries ranging from technology to health care.
About 30% of firms said they were shifting parts of their supply chains away from China and the United States to buy components from other places. A similar amount said they were delaying investment decisions because of the trade tensions.
