American Companies Working in China Suffer From US Trade Tariffs

Forex News

The United States and China have imposed tariffs on $50 billion of each other's goods since July as trade frictions between the world's two biggest economies worsened, despite several rounds of negotiations. Meanwhile, the Trump administration plans to impose further tariffs on $200 billion worth of Chinese goods.

According to the joint survey by AmCham China and AmCham Shanghai, the negative impact of the tariffs on US companies has been "clear and far reaching". Companies reported the tariffs were pressuring profits, reducing demand for their products and driving up production costs.

More than 60% of US companies polled said the Trump’s trade tariffs were already affecting their business operations, while a similar percentage said tariffs by China on US goods were having an effect on business. 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% said additional retaliatory Chinese tariffs would be bad for business.