Chinese Manufacturers To Shift Production Abroad To Bypass US Tariffs

MOSCOW, Feb 4 (Bernama-Sputnik/RIA Novosti) -- Chinese manufacturers plan to accelerate efforts to relocate production to other countries in a bid to bypass US tariffs, reported Sputnik/RIA Novosti.

According to the Financial Times (FT) on Tuesday, companies based in southern China said their strategies involve shifting some production elsewhere, including the Middle East, shifting costs to US customers and seeking alternative markets.

"A lot of Chinese exporters, especially in the consumer products market, had already lost part of their US market over the past few years after tariffs kicked in," Michael Lu, the president of China-based gift box producer Brothersbox, was quoted as saying by the FT.

On Saturday, US President Donald Trump signed executive orders to impose tariffs on goods imported from Canada, Mexico and China effective from February 4. US import tariffs of 25 per cent will be imposed on all goods from Canada, except for energy resources, where the rate will be 10 per cent. The tariff on goods from Mexico will also be 25 per cent. Tariffs of 10 per cent will be imposed on goods from China, in addition to those already in place on Chinese imports to the US.

On Monday, Trump announced a one-month waiver on the tariffs for Mexico and Canada after holding talks with the two countries' leaders, during which they pledged to enhance border security.

--BERNAMA-SPUTNIK /RIA NOVOSTI