US tariff pause on Beijing puts pressure on ‘China-plus-one’ countries

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Beijing/Mexico City/Hanoi: A new US China contract to prevent Sky High Tariff on each other, is pushing manufacturing centers such as Vietnam and Mexico to continue to exploit the “China Plus One” strategy by global producers, by global producers.

In a new global order given by President Donald Trump’s prices, countries do not compare their success with the United States with the terms of their trade agreements, but to other countries.

For the past five weeks, many countries have faced significant duties under Trump’s now “mutual” global tariff government, which was announced on April 2 with better rates than China, which saw US imports from May to 145 percent from May to 145 percent to 145 percent.

For example, Vietnam was better than China at a rate of 46 %, while Thailand was 36 % and 24 % in Malaysia.

Now, after a breakthrough in US China’s trade talks, everything is now in the air, which has resulted in a surprisingly 90 -day recovery from China, which has reduced the 30 % import tax rate for Made these Chinese products.

The revenue on China is still higher than the industrial centers, which pay 10 % of Trump’s 90 -day intervals, but some experts said the deal could prevent multinationals to further shift the supply chains outside China.

“The rules of the game are still uncertain,” said North American trade expert Diego Morroquin Butter. “I think companies are going to delay their investment.” Starting with his first term, Trump tried to take advantage of the revenue on China to force companies to move manufacturing in the United States.

For the United States, “research” has not been widely implemented, but in the past decade, companies like Apple have begun to look for alternatives to China, focusing on countries that offered relatively low -low labor costs and small taxes.

Southeast Asian countries were among the biggest beneficiaries along with Mexico, but if the US China tariff pause is increased, those countries can see their comparative advantage.

Vietnam, Thailand and Malaysia are currently discussing their tariff deals with the United States. Mexico, which avoids mutual rates, is also trying to reduce the separate duties of imports on specific products such as automobiles.

Sweet deals

Woo Snobo, director of the Center for American Studies at Fooden University in Shanghai, said that US China’s trade melt means that companies who considered to intensify foreign production efforts from China can now tap the brakes.

“They will maintain their current situation, maintain China as the center of their main operations and make proper partial arrangements in neighboring countries, but most of their business will remain in China,” he said.

Sun Chinghao, a colleague at Singhwa University’s International Security and Strategy Center, said that the uncertainty of Trump’s policy -making was “very painful for companies” who is trying to decide how much depression has to be done with China.

“The current co -coldown in tension does not mean that US firms dare to engage in business activities in China,” he said. “Everyone is still awaiting the possibility that prices can be re -enforced.”

For countries like Vietnam, which also attracted Chinese manufacturers, since Trump imposed prices in his first administration, with unexpectedly pressing Beijing to reach its sweet deals.

“If Vietnam manages to attack a better deal with China – which is more than today – he will present as an attractive alternative to China in regional investment strategies,” said Lef Schneider, the head of the international law firm in Vietnam.

Trade tensions and uncertainty have already reduced the promises of new foreign investment in Vietnam, which fell to 84 2.84 billion in April, a decrease of 30 % from March and about 8.0 % year -on -year.