Manufacturers are preparing for higher costs
As President Donald Trump threatens to apply The first tranche of tariffs China manufacturers are preparing for influence on Saturday.
Despite the biggest initial swing of Trump Canada and Mexico The US president has still China in the Radar of the US president. After a report, the management can cancel at least some duties, White House will be watched with Trump’s fist plans on Friday 10% Tariffs in Import from China Saturday. At the campaign trail, 60% or more tariffs for Chinese goods were threatened.
Trump contradicted the financial and the growth of the US production and work growth and used threats in the second term Earn goals in policy talks. Nevertheless, Trump, if applicants, they were able to collect prices for US consumers in everything for them electronics.
In China, new positions can damage exporters that trust in the US market. On a recent visit to the production pipeline of Guangdong province, factory owners preparing for the threat of CNBC were found. Here are three main takeaways:
Tariff threat increases prices for US consumers
Trump’s tariffs, hopes to beat the furniture seller, Harry Lee, doubled the number of products sent to the United States and stack in the warehouses.
The strategy expects to force him to increase by 10% – how much Trump’s tariffs are.
He sells five of his tables and other large furniture to American consumers.
“I have to send them in advance and take more risk,” he said in the Foshan factory.
His company is tianyiled, Trump plans to keep additional inventory in the United States until China is clearer for China.
Chinese factories accepts strategies
Along with stockpiling, LI reviews other ways to prevent border taxes.
“Something we can do is that these products are not on the tariff list, and instead of exporting to the United States,” he said.
The nearby Guangzhou, water treatment maker Zheng Yu, walks around the world to find a new production base outside the United States.
In a third country, it plans to build assembly lines and buy some equipment and components from China when hiring local work for certain work.
Zheng’s company Tesran is considering Vietnamese, Malaysia and Mexico as production bases, but the costs are 30% higher than China, but based on Dubai.
“The domestic market is very competitive. We would like to jump for a while,” he said. “Trump tariffs gave us a final boost.”
The founder of the Taskran is already connected to discuss the division of tariffs with US customers. Hopes that partners will receive at least half of the price.
There is a breaking point of Chinese factories – it can cause less choice for our vendors
CNBC was a point that was a point to sell all the enterprises to the United States, and the tariff limit of 20% to 60% depended on the limits of industry and one company.
Water treatment maker Zheng suggested that another wild card does not reveal the presidential tariffs and the president will raise the costs for Dubai.
“Then the United States is outdoors,” he said.
During Leng Rong, who prepares skin care products, is concerned that it can stop exporting completely to the United States.
In the first period of Trump, 20% north north north of north of north tariffs, and this caused great losses to Keni.
Leng with fine edges, hopes that it can pass the value of any tariff to its customers.
“In the past, we all felt that the United States market was the largest market for sale. But all the uncertainty and unfriendly decisions are less attractive in the US factory in the United States.”
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