Companies see China as a safety port in the middle of Trump prices

Even if President Trump has accumulated additional prices on China, his business damage to Asian countries and unpredictability about what he could do then encouraged certain companies to reduce himself in China, exactly the opposite of what he had hoped.

Trump has regularly increased pressure on China. On Wednesday, his new prices on China exceeds 100%, including a last -minute escalation serving as a punishment for Beijing reprisals from previous samples.

However, contrary to what happened during his first mandate, Mr. Trump accompanied the tariff campaign on China with steep import rights over dozens of other countries, including a handful of Asian countries which have become popular alternatives in the previous trade war between Beijing and Washington as a means of bypassing the samples and limiting the disruptions of the supply chain.

But for some companies, the so-called reciprocal rates had the unexpected effect of making China an even more attractive place to produce and buy. He eliminated part of the motivation to diversify production or supply in places such as Vietnam, India or other Asian countries.

In addition, the chaos that followed last week’s announcement made companies add more upheavals with a spectacular change to their supply chains. Faced with a constant flow and unpredictability, companies choose to stay with what they know: long -standing relationships with Chinese suppliers or manufacturing partners.

“Staying in China and operating China is currently everyone’s strategy,” said Travis Luther, founder of Moso Pillow, a bedding manufacturer based in bamboo fiber.