US firms plan for Trump China tariffs – stockpiling, raising prices?, bailing out of China

The Wall Street Journal (gated) with the report. Probably most interesting, for China, are moves to diversify supply chains away from the country:

American businesses are dusting off a playbook they used during Trump’s first term:

  • stocking up on imported goods before tariffs are enacted
  • also considering how to cope with the levies if and when enacted—whether they will be able to raise prices
  • whether they will need to find alternatives to their Chinese manufacturers

The piece quotes an electronics manufacturer in Guangdong province:

  • company has observed an increase in inquiries and “noticeable unease” from its U.S. clients
  • tariffs so far haven’t affected sales significantly
  • but that buyers end up absorbing the levies and sometimes raising prices for their end customers

Interesting times!

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment
Stay up to date
Register now to get updates on promotions and coupons
Optimized by Optimole

Shopping cart

×