President Trump’s tariffs are causing businesses with branches in China to pack up and move out, but not to the U.S., according to a new industry report. Instead, they’re moving to other Asian countries, an outcome that runs counter to the administration’s goal of bringing back jobs.
The American Chamber of Commerce in Shanghai and the American Chamber of Commerce in South China, which represent U.S. and international companies, said in a report released Friday the tariffs were having a “strong negative impact” on their members, forcing some to relocate.
“[T]he majority, nearly two-thirds (64.6 percent) of respondents, have not relocated and are not considering relocating manufacturing facilities out of China,” the study found. “Among those who are, the top destinations are Southeast Asia and the Indian Subcontinent. Only 6 percent say they are considering relocation back to the U.S.”
In other words, while China may be taking a hit, the companies and their jobs are remaining abroad.
“The tariffs are tactics in search of a strategy,” said Robert Scott, trade policy analyst for the liberal Economic Policy Institute.
“They’re as likely to lead to what economists refer ‘trade diversion’ — diverting trade to some other country — as they are to lead to reduction in the amount of trade. Much more likely, in fact,” Scott said. “China maintains the advantage. They’re just shipping their products to the U.S. through some other port.”
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Trump's China tariffs aren't forcing companies to settle in the US https://t.co/n3ghi1Wrg8
— Washington Examiner (@dcexaminer) November 1, 2018
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