United States, John, European Union discussed on All Things Considered
Filigree there in a hurry because come January the tariff is set to be raised twenty five percent. And after that. Well, we have other factories in Taiwan and Malaysia that can pick up the US orders and exports America without incurring tariffs manufacturers in China. Must be adaptable says John with the Chaozhou city standard parts factory. He's been in the nuts and bolts industry for three decades. And he says the US tariff isn't the first challenge is industry has faced lean Bunia after the financial crisis in two thousand eight market wasn't very good junk says some manufacturers tried to stay afloat by slashing prices on their products so much that the European Union accused Chinese producers of dumping or lowering prices to gain an unfair advantage. In response. The EU imposed duties on stealing iron screws nuts and bolts from China. The tariff on our company was about sixty percent others faced in eighty percent duty that nearly killed Chinese nuts. And bolts exports to Europe some companies recovered by redirecting their products back to the Chinese market others turned to the US Jong. Uwe is a sales manager with Jean-Ann star faster. The US market is now overtaken we've previously sold to the EU and the company sales to American businesses have been expanding at ten percent a year. He thought prospects were good until the Trump administration announced in September. Which products would be hit with tariffs. When we found out their products were included in the final tariff list stunned John you wa thing sales to the US could fall by at least half next year her backup plan she's away the boundaries. The only solution is to find a new market that includes trying Europe again, the EU dropped anti-dumping duties on Chinese nuts and bolts in two thousand sixteen still many people at this trade fair, including industry veteran junk believe trade tensions with the US are only temporary mail. There is no permanent war only permanent interests the trade tearful be removed. Once the interests of the US and China reach an equilibrium point he hopes that equilibrium point maybe reached after the midterm elections in Shanghai. I'm Jennifer pack for marketplace..