‘It’s like throwing darts blindfolded’; tariffs take toll on Chinese exporters

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BEIJING: Chinese manufactures from tableware to floor are flagging alerts of the Chinese manufactures, leaving new overseas plants to plan or accelerate foreign projects, while raising prices with consumers as they rape President Donald Trump.

Last week, Trump introduced 34 % additional taxes on Chinese goods as part of the standing levies on most US trade partners, which led to the total duties on China this year 54 % and is messing with global stock markets.

Although some people in China’s corporate sector have presented a brave face and said that rates will have little impact on operation and margin, others have revealed through emergency plans to prevent losses through corporate filing.

For many, Trump’s blanket prices threaten to accelerate the supply chains, and it is becoming difficult to navigate the turning point and turning point of business negotiations and trade policy. To eliminate the impact of the trade war, its global revenue attacks two key Chinese exporters’ two key strategies: transmitting some production abroad and increasing sales in non -US markets.

“This is like a dirt blindfolded. You don’t know where you are going. You don’t know where the taxes are going,” said Larry Sloven, who has been acquired from China for more than three decades.

“Once the hammer falls, you do not know where the hammer will fall after that.” US gatherings have been particularly severely strictly killed by Chinese suppliers who are already working on a thin margin.

Filling, which sells environmentally friendly tableware to US fast food giants, including KFC and McDonald’s, in response to his stock price fluctuations this week, “Trump’s prices will” have a more negative impact on the company’s work “.

The company, which was named “Manufacturing Champion” by Jiang’s provincial officials last year, said it would try to launch a new production facility in Indonesia this year, which would take part in the US -facing production in China, but by then the company’s profits could be affected.

Filling said 20 % tariffs imposed on China by the Trump administration have already been harmful earlier this year as “major US clients have asked the company to absorb some of the increasing tariff costs.”

Key raw material suppliers used in electric vehicles are also trying to find alternatives to manufacturing in China. Lopal, which provides lithium iron phosphate cathode material – which is an important component in making lithium batteries that strengthens power EV – said this week “will find opportunities to build a second overseas plant to reduce tariff effect on the company”. Trump’s prices are also damaging Chinese companies with US manufacturing capacity.

According to a report by China’s official securities Times, Tianzain, who sells floor products, said its planned production capacity for the US factory is 20 million square meters, its raw materials, equipment, and spare parts obtained from other countries will be affected by prices.

On Tuesday, China on Wednesday pledged to impose an additional 50 percent of Trump’s world imports from the world’s NO2 economy, when it would impose 50 percent of the world’s NO2 economy on Wednesday in response to Beijing’s decision to tackle Trump’s unveiling duties last week.

Tolls Toll

Some Chinese firms have even published fake scenarios to help investors assess the impact of taxes.

The PXI auto components, a salesman based in the car cooling and heating system, said in a filing last Thursday that if the company partially paid the cost of Trump’s additional revenue at a rate of 5.0 percent and 10 percent partially at 95.25 million yuan (13 million dollars) and 11 million yuan.

Referring to its fully -owned subsidiary in Mexico, and two -owned -owned companies in the United States and Spain, the PXI said, “To remove the risks posed by commercial veins, the company has set up a manufacturing base and sale subsidiary abroad.”

Not all affected Chinese companies have proposed construction factories in the United States or other countries as a strategy to deal with Trump prices.

Jos Maker Zefire said last week that he had responded to the situation by storing and talking with consumers at prices, to reduce the effects of Levies on some extent. “

The Chinese social media platform V -Chat states that Ningbo Gangzoong, a logistics company located in Port City Ningbo, which transmits the products manufactured by Amazon vendors like the United States, said on the Chinese social media platform VChat that new revenue has resulted in eliminating prices.

The notice of a platform showed in a platform’s notice, without any explanation, a few days later, V -Chat dropped the post down on violation of the rules.

“In the previous round of tariff adjustments, our company has absorbed its own costs,” Ningbo Gangzhoung said in a letter to its customers posted on his official V -Chat account. “However, this time, we have no choice but to make the necessary adjustments.”