As president Donald Trump threatening to impose his first tranša tariff On Saturday in the world, Chinese manufacturers are committed to influence.
Although Trump suggests his biggest initial momentum on Canada and Mexico With a 25%proposed tariff, the US president still has China on his radar. After the report that the administration could delay at least some duties by March 1, the White House said on Friday that Trump would follow plans for slap 10% tariff on imports from China Saturday. On the trail of the campaign, he threatened tariffs to Chinese goods of 60% or more.
Trump claimed that tariffs increase American production and growth of jobs, and at the beginning of his second term he used threats Obtaining an impact in policy negotiations. Nevertheless, if Trump imposes a levy, they could increase prices for us consumers to all, from furniture to electronics.
In China, new duties could harm exporters who rely on the US market. On a recent trip to Guangdong Province Production Belt, CNBC found the owners of a factory prepared to threaten the tariff. Here are three main deviations:
Tariff threat is already increasing prices for US consumers
Hoping to beat Trump’s tariffs, Harry furniture salesman doubled the number of products it delivered to the US and stores them in warehouses.
He expects a strategy to make him increase as much as 10% – no matter what Trump’s tariffs have dropped.
US consumers sell four out of five of their tables and other large furniture.
“I have to send them in advance and take over a higher risk,” Foshan said at his Foshan factory.
His company Tianyile plans to retain an additional inventory in the US until Trump’s tariff plan for China becomes clearer.
Chinese factories adopt a confrontation strategy
In addition to supplies, do you consider other ways of avoiding border taxes.
“One thing we can do is choose those products that are not on the tariff list and instead bring them to the US,” he said.
In the nearby industrial city of Guangzhou, the manufacturer of the water purifier Zheng Yu passes in the world to find a new production base to supply the US outside China.
He plans to establish prefabricated lines in a third country, buy some equipment and components from China, while locally employed for certain jobs.
Zheng -This company Tesran considers Vietnam, Malaysia and Mexico as a production base, but leans in Dubai, although the costs will be 30% higher than in China.
“The domestic market is too competitive. We want to jump out of it for some time,” he said. “Tariff Trump gave us the final pressure.”
The founder Tesrana is also in contact with his customers in the US to talk about sharing the tariff. He hopes his partners will take at least half of the costs.
Chinese factories have a turning point – which could lead to fewer choices for customers of us
All CNBC companies spoke with a turning point where it would no longer make sense to sell the US -in tariff thresholds ranged from 20 to 60%, depending on the industry and size of the company margin.
The manufacturer of the Zheng water purifier said another savage ticket is to propose the Universal tariff that in his case will increase the costs for Dubai in his case.
“Then they are now,” he said.
Through Guangzhou, Leng Rong, who makes skin care products, is worried that he may have to completely stop exporting to the US.
His goods were affected by tariffs north of 20% during Trump’s first term and this caused great losses for his Keni company.
With her thin margins, Leng hopes to be able to convey the price of any tariff to his customers.
“In the past, we all felt that the US market was the largest market that everyone wanted to sell. But with all uncertainty and enemy decisions, now they are less attractive now,” Leng said in his Guangzhou factory. “It’s a shame.”
