Chinese Manufacturers are Feeling the Pinch

Date: Friday, November 30, 2018
Source: The Wall Street Journal

Chinese manufacturers are feeling the pinch as import tariffs upend global supply chains. Big American retailers like Walmart Inc. and Amazon.com Inc. are trying to blunt the impact of levies on $200 billion in Chinese goods by cutting orders, switching product mix and engaging in drawn-out haggling over price, the WSJ’s Natasha Khan and Yifan Wang report. The new demands are whipsawing Chinese suppliers, who are hustling to line up new customers outside the U.S. to make up for skidding sales. Some American companies are slashing orders for private-label products that are now unprofitable, and retailers have pulled some imports forward to avoid anticipated tariff increases. The back-and-forth on orders is delaying discussions on new products for the coming year, talks that usually take place in the fourth quarter. Toys could be the next flashpoint if the levies expand further.

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