The initial reaction to the Trump administration’s imposition of tariffs was shock. Businesses dependent on imported goods anticipated some duties, as promised by President Trump. However, they were not prepared for the magnitude, universality, or suddenness of these tariffs, which left little time for adjustment. A 145 percent tariff on all Chinese products represents a significant trade barrier.
As the shock subsides, corporate leaders are adapting. Here are some strategies businesses are employing, at least temporarily, considering the unpredictable nature of White House tariff declarations. One approach is to shift production out of China as quickly as possible. The first trade war in 2018 encouraged many companies to diversify their sourcing beyond China. The Covid-19 pandemic further highlighted the risks of relying on a single market, regardless of its cost-effectiveness and efficiency.
— new from The New York Times