European firms sidestepping ‘futile’ tariffs, not moving from China to US, survey sugWatch
But smaller European companies ‘taking a steady beating’ as a result of tariffs
US tariffs have failed to attract investment to the United States or pressure China into structural reforms, an influential European business lobby group has said after its research suggested large companies had found ways around the charges.
Large European companies operating in China had “effectively sidestepped” tariffs imposed by Washington and Beijing, the European Union Chamber of Commerce in China said in its latest survey on the tariffs on Monday.
However, its survey of firms found that smaller companies were taking “a steady beating” as a result of tariffs.
“That European companies in China have effectively negated tariff effects in a relatively short space of time only serves to highlight the futility of bilateral tariffs in a global marketplace.”
Large companies with global footprints had re-routed the origins and destinations of US or China-bound products to avoid the US-China trade border, “rendering the bilateral tariffs ineffective”, the survey found.