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 enactedalso considering how to cope with the levies if and when enacted—whether they will be able to raise priceswhether they will need to find alternatives to their Chinese manufacturersThe 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 significantlybut that buyers end up absorbing the levies and sometimes raising prices for their end customersInteresting times! This article was written by Eamonn Sheridan at www.forexlive.com.
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.
