Nearly two-thirds of the 254 companies who responded said the new tariffs have reduced expected revenues for their China operations in 2025. About one-third, many in banking and other industries that don't import from or export to the US, don't expect any impact
Xi Jinping, president, China. Pic/AP
Many US companies operating in China expect their sales to take a hit this year from US President Donald Trump's tariffs and the ones that China has imposed in response, according to an annual survey released Wednesday by the American Chamber of Commerce in Shanghai.
Nearly two-thirds of the 254 companies who responded said the new tariffs have reduced expected revenues for their China operations in 2025. About one-third, many in banking and other industries that don't import from or export to the US, don't expect any impact.
Trump has imposed an additional 30 per cent tax on imports from China, after raising them at one point to 145 per cent before the two countries agreed in May to scale back a tit-for-tat tariff war. China has responded with a 10 per cent tax on US imports.
The tariffs hit companies that export to the US and those that import American parts or ingredients for their production in China, such as chemical companies, Shanghai chamber leaders said. 'Tariffs have had a huge impact on our operations,' said Eric Zheng, the president of the group.
The two sides are holding trade talks, but where they are headed on tariffs and other issues is unclear. The uncertainty is a challenge for companies that need to make plans for the future, Zheng said.
American courts have ruled that most of Trump's tariffs are an illegal use of a US emergency powers law, but the import taxes remain in place as his administration appeals the case to the Supreme Court.
The Shanghai chamber survey, conducted from May 19 to June 20, found that manufacturers are being hit the hardest by the tariffs, with close to three-quarters saying the import taxes would reduce their 2025 China revenues.
Respondents named US-China tensions as their top challenge for the next three to five years. Zheng called improving the bilateral relationship 'our No. 1 ask.'
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