In May this year, the United States declared that it increase prices on Chinese semiconductors by 25 to 50 percent by 2025.
Other tariffs, including a 100% duty on Chinese electric vehicles, 50% on solar cells and 25% on steel, aluminum, electric vehicle batteries and key minerals, are entered into force on September 27.
Despite the cost savings it can pass on to its customers through its operations in Vietnam, IBE Electronics still faces some challenges.
Due to the country’s burgeoning industry, production time there is two weeks longer than at its factory in China. There is also an additional 5 percent shipping charge.
POTENTIAL FUTURE IMPORT TARIFFS
Offshoring from China may also not protect companies from risks of further escalations in the trade war.
Analysts expect the stalemate to continue whether Democratic presidential candidate Kamala Harris or her Republican rival – and former president – Donald Trump wins the election on Tuesday (November 5).
However, under the Trump administration, several countries may have reason to fear for the future of their trade relations with the United States.
Trump announced that if re-elected, he would impose tariffs of 10 to 20 percent on all imports. This is separate from the tariffs of 60 percent or more on Chinese imports to the United States that he plans to put in place.
“Many more Chinese companies will come to Vietnam in the future. However, we are also concerned about the tariffs on Vietnam, which is why we need a facility in the United States,” Ms. Xu said.
