US Tariffs Shake Up American Businesses in China
US companies in China face revenue declines due to US-China tariffs, according to an American Chamber of Commerce survey. About two-thirds report reduced 2025 revenue projections, particularly in manufacturing. Despite trade talks, future tariff impacts remain uncertain, posing challenges for business planning.
- Country:
- China
US companies operating in China are bracing for a significant financial impact this year due to tariffs imposed by the US and retaliation by China, as reported by the American Chamber of Commerce in Shanghai.
According to their annual survey, nearly two-thirds of the 254 responding companies anticipate reduced revenue expectations for their China operations come 2025. This decrease will be particularly felt by manufacturers importing American parts or exporting to the US. However, about one-third, primarily in banking and similar sectors, foresee no direct impact.
Additional tariffs imposed by President Trump have put a strain on these firms, with an added 30% tax on Chinese imports that peaked at 145% before a temporary reduction was agreed upon. Despite ongoing trade talks, the path forward remains ambiguous, complicating future planning for these businesses. Manufacturing sectors report being hit the hardest, with most citing US-China tensions as their top future challenge, underscoring the need for better bilateral relations.
(With inputs from agencies.)
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