European companies are wasting no time waiting for President Trump to come forward with a workable resolution to his world-wide trade war. The President of the European Union Chamber of Commerce in China, Mats Harborn said yesterday Tariff hikes are …
"Hitting immediately the bottom line of companies that rely on the free flow of trade across the globe and are changing the global flow of their goods to avoid higher American tariffs.”
“Tariffs are a dangerous and very blunt instrument"
"We share the concerns expressed by the American side. There are better and less risky ways to deal with these problems."
Companies that export from China are according to Harborn …
"scrambling to readjust supply chains so U.S.-bound goods don't pass through China.”
The unilateral tariff hikes on medical equipment, electronics, and other goods from China apply to exports made by U.S. or European companies as well as Chinese suppliers amounts to 25 percent tariffs on $34 billion of goods.
China escalated the trade dispute by stepping up action against some U.S. goods announcing anti-dumping duties on raw materials used in making optical fibers.
Optical fiber preforms from the United States and Japan will face additional duties of 37.9 to 78.2 percent for five years, according to Japan’s Ministry of Commerce.
On Monday, Chinese and German companies including BASF and Volkswagen signed business deals worth 20 billion euros ($23.6 billion) during a visit to Berlin by China's No. 2 leader, Premier Li Keqiang.
Mats Harborn pointed out that Trump’s trade war is already backfiring on U.S. businesses. Besides the $34B German Chinese deal signed …he noted that a European supplier of environmental technology believed it might have been awarded a Chinese government contract ahead of an American competitor due to its non-U.S. status.