Trump's tariffs seen cutting into China sales of US companies, survey finds

Key Points

• Nearly two-thirds of U.S. companies in China predict reduced revenues for their operations in 2025 due to Trump's tariffs and reciprocal tariffs imposed by China.
• The tariffs are significantly affecting manufacturers, with around 75% reporting a negative impact on their anticipated China revenues.
• The ongoing trade talks between the U.S. and China add uncertainty for businesses planning for the future.
• U.S.-China tensions have been identified as the top challenge for American companies over the next three to five years.

BEIJING (AP) — Many U.S. companies operating in China expect their sales to take a hit this year from U.S. President Donald Trump's tariffs and the ones that China has imposed in response, according to an annual survey released Wednesday by the American Chamber of Commerce in Shanghai.

Nearly two-thirds of the 254 companies who responded said the new tariffs have reduced expected revenues for their China operations in 2025. About one-third, many in banking and other industries that don't import from or export to the U.S., don't expect any impact.

Trump has imposed an additional 30% tax on imports from China, after raising them at one point to 145% before the two countries agreed in May to scale back a tit-for-tat tariff war. China has responded with a 10% tax on U.S. imports.

The tariffs hit companies that export to the U.S. and those that import American parts or ingredients for their production in China, such as chemical companies, Shanghai chamber leaders said.

“Tariffs have had a huge impact on our operations,” said Eric Zheng, the president of the group.

The two sides are holding trade talks, but where they are headed on tariffs and other issues is unclear. The uncertainty is a challenge for companies that need to make plans for the future, Zheng said.

American courts have ruled that most of Trump’s tariffs are an illegal use of a U.S. emergency powers law, but the import taxes remain in place as his administration appeals the case to the Supreme Court.

The Shanghai chamber survey, conducted from May 19 to June 20, found that manufacturers are being hit the hardest by the tariffs, with close to three-quarters saying the import taxes would reduce their 2025 China revenues.

Respondents named U.S.-China tensions as their top challenge for the next three to five years. Zheng called improving the bilateral relationship “our No. 1 ask.”