Trump's trade war is here to stay. Companies like mine will pay the price. - HailNewsUp.com: provides the latest news from India and the world

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Tuesday, June 11, 2019

Trump's trade war is here to stay. Companies like mine will pay the price.

Trump's trade war is here to stay. Companies like mine will pay the price.
The growing Trump administration business with China has left American companies with some options. They should reduce their dependence on Chinese manufacturers or be comfortable with the high cost and low-profit margins.

There is no end to the tight-to-toe trade war, companies should move towards low-cost countries in Asia and the United States to find alternative suppliers. The problem is that it is becoming difficult to find a nation that does not have the purpose of President Trump's tariff schedule.

With the recent 25% increase in tariffs on Chinese products and the dangers of an additional $ 300 billion in Chinese products, companies like Khan, Canary LLC are looking for new suppliers to avoid taxes and save profits. Canary is considering Mexico as a viable supplier of important equipment for our oil field service business.

With the rise of the tariff by the Trump government, the decision to threaten Mexico, until it stopped crossing the illegal border for the United States, we had to return the revolver. A last-minute agreement between Trump and Mexico has ended, at least temporarily, that commercial conflict, but uncertainty.

We are not alone in finding alternative supply chains. Other industries are exploring ways to avoid the tariff and to oppose the high cost of products for consumers. Like Canary, their options are limited. Trump has threatened to impose a tariff on imported cars and parts, which would harm the European and Japanese car manufacturer, and American companies who rely on global supply chains, it is surprising if a place is safe.

To be fair to President Trump, keep in mind China's business practices, including the alleged theft of business secrets and forcibly exchange of technology, a long time has passed and, if it was not for trump, then It will reach one. Point. Important in future government

Reducing the United States excessive confidence in Chinese imports would be long-term health. Reducing the trade deficit with China will give Washington more impact on future negotiations on strategic economic and geopolitical issues. But it will be painful for US businesses and consumers in the short run.

According to a new report by economists of the Federal Reserve of New York, diversity is already occurring. In October, an 8% increase in Chinese imports had dropped to 18% in March, before Trump increased tariff rates from 25% to $ 200 billion Chinese products at the beginning of May. China's export orders were compared with China's National Bureau of Statistics.

The neighbors of China's Southeast Asia are mainly benefiting. According to the latest data from the census bureau, in the first four months of 2019, US imports from Taiwan increased to 22%, while imports from Vietnam increased by 38%. South Korea's first quarter imports increased by 17%

In Canary, we are working to stay as a tariff on Chinese products. The Chinese government recently published a white paper on trade dispute, which makes it clear that Beijing is not giving America's demands in the short-term.

We have taken very much of our manufacturing to Vietnam, India, Malaysia, and South Korea. We still rely on China for a significant portion of other steel products used in China and oil fields, but it is in decline. Our goal is to represent 25% of our international purchases within the year for non-Chinese sources, which is above our last target of 10%.

Like other American companies, we believe that trading with these rival suppliers can be more expensive than our traditional Chinese partners. But over time, this may not be the case with long-term trade warfare between the United States and China, as manufacturers do not expand their capabilities in countries targeted by Trump. For now, the smart thing is to build solid business relations in those countries with which Washington has very little liquids compared to Beijing.