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Trade Tariffs Prompt US Manufacturers to Shift Operations Outside China

Jeff Brody

U.S. companies have accelerated efforts to adjust supply chains after the Trump administration increased the tariff rate from 10 percent to 25 percent on $250B worth of goods imported from China, the Wall Street Journal reported Sunday.

Data from the U.S. Census Bureau showed that Chinese imports declined 12 percent from January to May of this year, the largest drop since the 2008 financial crisis.

Cummins, iRobot and Crocs are among the companies that manufacture products in China and intend to shift most production operations to other countries as the trade war drags on. Tariffs between the two countries also prompted Apple to consider transitioning final assembly work on some devices to other locations such as a Southeast Asian country.

More than 600 companies and trade groups sent a letter to President Trump last month urging his administration to resume talks with the Chinese government in order to end the trade dispute.

“We urge your administration to get back to the negotiating table while working with our allies to develop global, enforceable solutions. An escalated trade war is not in the country’s best interest, and both sides will lose,” the signatories wrote.

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