Tariffs are Washington’s weapon of choice in its trade war against Beijing.
The U.S. has levied 25% fees on up to $250 billion worth of goods imported from China, forcing manufacturers to either swallow the additional costs or pass the difference onto consumers. But reports suggest that some companies are choosing a third option: shifting production outside of China.
In a poll released by the American Chamber of Commerce (AmCham) and its counterpart in Shanghai last month, roughly 40% of 250 surveyed firms said they were “considering or have relocated manufacturing facilities outside of China.” In a similar AmCham survey last September, only 30% said they were considering partial relocation. However, the exit can’t all be chalked up to the trade war.