According to a joint survey of hundreds of firms, conducted by AmCham China and AmCham Shanghai and published on Thursday, the US firms in China are bearing the brunt of the tariffs amid escalating trade tensions between the US and China.
More than 430 companies responded to the survey between Aug. 29 and Sept. 5
Key Findings (via Reuters):
“More than 60 percent of U.S. companies polled said the U.S. tariffs were already affecting their business operations, while a similar percentage said tariffs by China on U.S. goods were having an effect on business.
Companies reported the tariffs were pressuring profits, reducing demand for their products and driving up production costs.
Roughly three-in-four firms surveyed said duties on an additional $200 billion worth of Chinese goods would hurt business further, and close to 70 percent said additional retaliatory Chinese tariffs would be bad for business.
More than 52 percent of respondents to the survey reported already suffering the consequences of such measures, mainly through increased inspections, slower customs clearance and “other complications from increased bureaucratic oversight or regulatory scrutiny”.
Nearly two-thirds of the companies that responded have not relocated nor were they considering moving manufacturing facilities away from China. Only 6 percent said they were considering relocation back to the United States, the survey said.
Meanwhile, nearly a third of companies said they were considering delaying or canceling investments, underscoring the heightened uncertainty created by the trade tensions.
About 30 percent said they were adjusting supply chains by seeking to source components and/or assembly outside the U.S., and about the same number were seeking to source components and/or assembly outside China.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.