(2018-09-14 01:58:13)
The trade war is already hurting US companies in China
US companies in China say they are already feeling the pain from the trade war.
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 chainsaway 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.
Analyst: Trade war is big headline, not big problem
Some businesses reported other changes in recent months, such as more tax or environmental inspections and slower clearance of goods at Chinese customs, according to the study.