Statement on the Recent Escalation of Tariffs by the US and China Go back »

2025-04-09 | All chapters

The tariffs that the US has levied on Chinese imports will have a significant impact on European Chamber companies exporting from China to the US, which will necessitate a further strategic rethink of business models and supply chains for many. This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers.

Many of the Chamber’s member companies have already shifted or are in the process of shifting their business strategies towards an ‘in China for China’ model. This is being done both to mitigate risks derived from growing global trade and other geopolitical tensions, and to meet regulatory and/or government procurement requirements in China that are increasingly pushing for ‘made in China’ products, as well as for commercial reasons. Despite this, long-standing issues, such as the lack of a level playing field—especially when it comes to Chinese government procurement—continue to limit foreign-invested companies’ opportunities in China.

The US is now rolling back on many of the principles that have underpinned its approach to global trade and investment, which has created unprecedented global economic uncertainty. Therefore, China has the chance to establish a business environment that can provide the stability and reliability that investors require. The European Chamber believes that a good start in this regard would be to follow through on the Chinese Government’s high-level pledges to improve the business environment for foreign investment, and looks forward to providing constructive recommendations as to how these can be best implemented.

Additional context

Some companies that currently produce in China for export to the US will need to identify alternative markets, while others may need to move production from China in order to continue servicing the US market.

China’s countermeasures will also have a negative impact on some foreign-invested enterprises in China that import certain components from the US for their production. For companies that are unable to source alternatives, this could also result in them having to move their production out of China altogether. However, this situation could be further complicated if the US moves forward with proposed tariffs on many other countries that may previously have been seen as viable alternative markets to establish production facilities.

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