The tariff pain is getting real for Chinese companies
1 month ago

The tariff pain is getting real for Chinese companies

Live Mint  

SINGAPORE—Cui Shu, a lawyer in the southeastern Chinese city of Xiamen, was working in his office Friday morning when a flurry of calls and text messages arrived from clients, frantically seeking guidance about President Trump’s latest proposal, delivered by social-media post hours earlier: an additional 10% tariff on all Chinese imports. Trump’s new tariff proposal adds more urgency to plans among Chinese manufacturers to shift production outside the country, especially to Southeast Asia. Trump’s latest tariff proposal adds more urgency to plans among Chinese manufacturers to shift production outside the country. When Trump raised tariffs on Chinese goods during his first presidential term, many companies embraced a “China plus one" strategy, seeking alternatives to China as the world’s factory floor. Trump has tied both of his announced tariff increases so far in his second term to China’s role in the global fentanyl supply chain, which the Chinese Commerce Ministry spokesman described as an attempt at “passing the buck."

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