Companies Shift Production Back to China as U.S. Tariffs Fall to 12.5%
Updated
Updated · The New York Times · Jul 29
Companies Shift Production Back to China as U.S. Tariffs Fall to 12.5%
3 articles · Updated · The New York Times · Jul 29
Summary
A 12.5% U.S. tariff on Chinese exports is prompting some companies to reverse last year’s China-plus-one moves and send production back to China.
Alliance Consumer Group said it has pulled back to China after duties on Chinese goods fell closer to those on Thailand, undercutting the cost case for expanding alternative factories.
The shift follows a whiplash year in which Trump’s 145% China tariffs pushed manufacturers to scout Vietnam and Thailand, including a half-built flashlight plant south of Bangkok.
China still faces older Trump-era duties and could see more tariffs, but executives and analysts expect Washington to keep future China measures relatively restrained to stabilize ties.