Half of US firms in China foresee acute pain from new tariffs as trade war escalates, AmCham survey finds
The American Chambers of Commerce in Beijing and Shanghai found that US firms there expect to lose profits as high production costs and lower demand for products kick in
Three quarters of the American companies operating in China expect to be harmed – half of them significantly – by new tariffs set to be imposed on imports as the trade war intensifies, according to a survey by two business lobby groups.
The American Chambers of Commerce (AmCham) in Beijing and Shanghai found that firms foresee loss of profits, higher production costs, lower demand for products and reduced staff levels.
In the survey of 430 companies conducted by the chambers, 74.3 per cent of respondents said the punitive tariffs would have a “negative impact” on their businesses.
More than 47 per cent of the businesses are expecting a “strong negative impact” if the White House fires the next barrage of tariffs at US$200 billion worth of Chinese goods destined for the United States.
The findings stand in contrast to the apparently upbeat mood that existed among US companies two months ago when 62 per cent of respondents in another AmCham survey expected to increase their investment in China, salivating over the potential of the mammoth market.