Nearly half of U.S. companies operating in China are urging President Donald Trump to eliminate all tariffs on Chinese goods, according to a new survey released by the American Chamber of Commerce in Shanghai.
AmCham Survey Reveals Growing Business Concerns Over Trade Uncertainty
The chamber’s annual China Business Report, based on responses from 254 companies surveyed between May 19 and June 20, found that 122 respondents, which is 48% want complete removal of tariffs and nontariff barriers against Chinese goods, reported Nikkei.
Trade War Escalation Hits Business Operations
Trump announced “reciprocal” tariffs in April, escalating to over 100% duties on Chinese products after China retaliated. While both sides agreed to temporary tariff reductions in May, extended through August, U.S. tariffs on Chinese goods remain 30% higher than January levels.
The trade volatility has severely impacted bilateral commerce. Chinese shipments to the U.S. fell 33.1% year-over-year in August, while U.S. imports to China dropped 16%.
“Volatility of the bilateral trade relationship has created immense uncertainty for foreign companies operating in China,” the AmCham report states.
Revenue Impact Spreads Across Industries
Nearly two-thirds of survey respondents expect tariff tensions to negatively impact their China revenues, with chemicals, logistics, and industrial manufacturing sectors facing the highest exposure.
“Some companies were hit both ways,” said Eric Zheng, AmCham Shanghai’s president, referring to firms importing U.S. intermediaries to China before shipping finished products back to America.
Companies like DuPont Co. (NYSE:DD) have faced additional scrutiny, with China launching an antitrust probe shortly after Trump’s tariff announcement, though it was suspended in July, according to the report.
Limited Success for Manufacturing Reshoring
The survey reveals that Trump’s “reshoring” objectives face significant challenges. Only 18% of companies redirected investments to the U.S., while 51% chose Southeast Asia as their preferred alternative to China operations.
Despite business concerns, 71% of members reported profitability in 2024, up from 66% in 2023, with revenue growth increasing to 57% from 50%.
However, just 45% expect revenue increases this year, marking a record low, while only 30% anticipate China outperforming global growth rates over the next three to five years.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Joey Sussman from Shutterstock
