Chinese companies brace for tariff hike: ‘If the tariffs rise to 25%, then we’re done for’

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Chinese exporters of all sorts of products, from power adapters and computers to vacuum cleaners, are anxiously hoping trade talks in Washington this week...

BEIJING — Chinese exporters of all sorts of products, from power adapters and computers to vacuum cleaners, are anxiously hoping trade talks in Washington this week will yield a deal that might stave off higher U.S. tariffs on imports from China.

“I really hope that the two countries can reach an agreement,” Chen said in a phone interview. “We just can’t swallow the costs of a tariff increase.” Many Chinese companies are reluctant to speak publicly about their problems, especially those linked to sensitive topics such as the ruling Communist Party’s policies on trade and technology.

He declined to give his full name. He said 30% to 40% of his company’s products are exported to the U.S. Financial markets took that as a positive sign. The Shanghai Composite index SHCOMP, +3.10% jumped 2.1% and Hong Kong’s Hang Seng HSI, +0.84% gained 1.4%. On Wall Street, Dow YMM9, +0.56% and S&P 500 ESM9, +0.50% futures also logged gains after markets closed on Thursday.

 

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Screws consumers as always!

Ouch! That is hurted! 95% of chinese population would not dare to speak against their leaders!

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