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"If we do not spend money, then other industries do not pay us either," he said.
The Trump administration has set its initial tariff schedule to spare consumers, and many of the products that American families buy in China, such as flat-screen TVs and shoes, will not be directly affected on Friday. But US companies that depend on Chinese products should feel the effects, since tariffs are heavily focused on the type of intermediate inputs and equipment that companies buy.
A spokesman for the Chinese Ministry of Commerce said on Thursday that "If the US imposes additional tariffs, they will impose taxes on Chinese and foreign companies, as well as US companies," the statement said. spokesman, Gao Feng at a press conference. in China. "To put it simply, the United States is shooting at the world, and it is also pulling on itself."
Economists say it will increase costs for US industry, potentially threatening manufacturing jobs that Mr. Trump has long said he wants to protect, and some of these higher costs will eventually cross the supply chain for US consumers.
Razat Gaurav, the general manager of LLamasoft, who advises companies on The organization of their supply chains, said that many of its customers are planning to restructure their operations, some choosing to establish in countries like Vietnam or Mexico.Other delay large investments, like new factories, and try to avoid signing long-term contracts with suppliers – any changes that will ultimately impact the economy.
Many international companies are shipping their supply chains to China and America. companies may end up feeling the effects of a trade war more vividly than their Chinese competitors. The research of Mary Lovely and Yang Liang of Syracuse University shows that in the field of computer and electronic products, for example, non-Chinese multinational companies operating in China provide 87% of the products that will be affected by tariffs, while Chinese firms only send 13 per cent.
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