“China’s share of global manufacturing is now larger than the combined share of the US, Japan, Germany, and South Korea.”
Efforts by the US to block China’s attempts to avoid tariffs may strain global supply chains. Waning supply from China could drive prices higher as other economies take time to fill the gap.
Nick Timiraos, Chief Economics Correspondent at The Wall Street Journal, remarked:
“One question (assuming it sticks) is to what extent the 125% tariffs on China become a tax that aren’t paid because orders get pulled.”
Timiraos cited an example from Guangdong, where toy manufacturer Chen Qingxin received an immediate order cancellation from a US client following the tariff hike.
Chen reportedly stated:
“It is a deal breaker. No room for doing business anymore, for both sides.”
