US firms plan for Trump China tariffs – stockpiling, raising prices?, bailing out of China

The Wall Street Journal (gated) with the report. Probably most interesting, for China, are moves to diversify supply chains away from the country:

American businesses are dusting off a playbook they used during Trump’s first term:

• stocking up on imported goods before tariffs are enacted
• also considering how to cope with the levies if and when enacted—whether they will be able to raise prices
• whether they will need to find alternatives to their Chinese manufacturers

The piece quotes an electronics manufacturer in Guangdong province:

• company has observed an increase in inquiries and “noticeable unease” from its U.S. clients
• tariffs so far haven’t affected sales significantly
• but that buyers end up absorbing the levies and sometimes raising prices for their end customers

Interesting times!

This article was written by Eamonn Sheridan at www.forexlive.com.