Last week, United States President Donald Trump imposed tariffs on another set of imported Chinese products worth $200 billion.
With United States announcing tariff hike against Chinese imports, a large number of Asian manufacturers are mulling shifting manufacturing base from China to other countries.
These manufacturers produce items ranging from memory chips to machines tools in China.
According to a Reuters report, South Korean company SK Hynix and Japanese firms Mitsubishi Electric, Toshiba Machine Co and Komatsu began shifting production facilities since July when the first tariffs hit.
Other companies such as Taiwanese computer maker Compal Electronics and South Korea’s LG Electronics, are making contingency plans in case the trade war continues or deepens, Reuters report said.
Last week, United States President Donald Trump imposed tariffs on another set of imported Chinese products worth $200 billion. The new import taxes will rise to 25 per cent at the end of 2018.
In a tweet last week, Trump said tariff increases have put the US economy in a strong position, with billions of dollars and jobs flowing into the country.
"Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be “Tariffed!”(sic)”
In its official note, the US president warned that "if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."
Earlier in June, the US imposed higher tariffs on $50 billion worth of Chinese products. Then China, in a retaliatory measure, had targeted $50 billion on American goods.
The latest move by US is set to widen trade conflict between the world's two largest economies. China has already threatened to retaliate against new duties, and manufacturing companies are wary of the widening trade gap between two countries.
Source: Reuters & media reports