Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Atomic Energy Organization of Iran: Iran and Russia sign $25 billion agreement to build four nuclear power plants
Al Mayadeen's correspondent in the Bekaa Valley, eastern Lebanon: Israeli airstrikes targeted the vicinity of the town of Nabi Sheet in the al-Shaara heights
Yemeni Ministry of Health: The death toll from the Israeli aggression on the capital, Sanaa, has risen to 9 martyrs, including two women and four children, in addition to 174 injuries, including 35 women and 59 children, in a non-final toll
War Sec Hegseth ordered hundreds of the US military’s generals and admirals to gather on short notice, at a Marine Corps base in Virginia next week.
Al Mayadeen correspondent: The Israeli airstrikes targeted residential neighborhoods and civilian infrastructure in southern, eastern, and western Sanaa.
Israeli aggression raids targeted residential neighborhoods in the southern, eastern, and western parts of the Yemeni capital, Sanaa.
Al Mayadeen correspondent in Yemen: Israeli aggression targets the Yemeni capital, Sanaa.
Israeli Channel 12: Car explodes in Tel Aviv, injuries reported
Venezuela hit by 6.31 magnitude earthquake
Iran obtained these documents through a complex security operation carried out months ago.

Trump tariffs backfire, US firms stay in China amid trade uncertainty

  • By Al Mayadeen English
  • Source: Politico
  • 1 Sep 2025 10:57
4 Min Read

US President Donald Trump’s strategy to bring manufacturing back from China to the United States is faltering, despite aggressive tariff hikes and mounting pressure on global supply chains.

Listen
  • x
  • The NYK Meteor container ship is moored at the Port of Los Angeles on April 9, 2025, in Los Angeles. (AP Photo/Damian Dovarganes, File)
    The NYK Meteor container ship is moored at the Port of Los Angeles on April 9, 2025, in Los Angeles. (AP Photo/Damian Dovarganes, File)

US President Donald Trump pledged that his aggressive trade policies would prompt a manufacturing "exodus" from China to the United States. However, Politico reports that despite sweeping tariff increases and vocal appeals for companies to "reshore," many American firms are choosing to stay in China.

Business leaders and trade organizations argue that remaining in China continues to be the least risky path. The uncertainty surrounding Trump's tariffs, coupled with broader instability in US-China relations, has made relocating operations unattractive or financially unfeasible.

A survey released by the US-China Business Council in July found that while some companies are reassessing their investment strategies, roughly two-thirds of US firms operating in China plan to maintain or even expand their investments.

Read more: FP: Why the Global South won't pick sides in US-China rivalry

“Simply put, we’re trapped,” Judd King, founder of Los Angeles-based Starlux Games, said to Politico. His company relies on LED components manufactured in China. “There’s no ‘wait and see’ anymore. It’s just we have to pay [the duties].”

The situation is particularly difficult for small and medium-sized businesses, which lack the leverage of large retailers to absorb the costs or negotiate better deals with suppliers.

Read more: US Court rules Trump's tariffs are mostly illegal

Tariffs and the rising cost of doing business

Trump’s broad tariff regime has included not only China but also key manufacturing countries like Vietnam, Indonesia, and India. Since April, some tariffs have surged to as high as 145 percent. Meanwhile, India now faces an additional 50 percent tariff as punishment for purchasing Russian oil.

Related News

French farmers plan nationwide protest over trade, food sovereignty

Majority in EU's big five feel bloc 'sold them out' to US: Poll

These Trump tariffs are hitting businesses hard. According to Politico, big-box retailers such as Walmart, Target, and Home Depot have already reported price hikes due to increased import costs. For instance, the price of a Barbie doll at Target rose by nearly 43 percent since April, according to the Telsey Advisory Group.

Even companies that attempted to diversify through the “China-plus-one” model, sourcing from neighboring countries, are facing high duties. Many of these nations are now subject to tariff rates that nearly match those imposed on China.

Read more: Trump's tariffs hit American small businesses hardest: Report

Trade uncertainty paralyzes supply chains

Beyond the financial burden of tariffs, Politico states that the lack of policy clarity is proving just as damaging. Trump’s administration has increased duties not just in response to trade concerns, but also for unrelated geopolitical disputes, further destabilizing US-China relations.

A federal appeals court recently ruled that the president may lack the legal authority to impose certain tariffs, setting the stage for a Supreme Court battle and introducing further uncertainty for businesses.

“The China-plus-one has been blown up,” Cameron Johnson, senior partner at Shanghai-based Tidalwave Solutions, told the news outlet. “Medium- and lower-end US firms are either bailing from the market or going out of business.”

Read more: Xi’s outreach sparks India-China rapprochement amid US tensions

Fallout for US companies and consumers

Multiple US businesses have already filed for bankruptcy, blaming tariffs for slashing their revenue. The At Home Group and IG Design Group are two such examples.

Retail analyst Joe Feldman warned Politico that the true impact of tariffs may yet be felt. “I think we’ve gotten a bit of a false read because things haven’t been so bad year-to-date… but I’m worried it’s coming.”

Meanwhile, companies are scrambling to adjust. King, of Starlux Games, noted his firm is shifting away from toy manufacturing and toward less tariff-sensitive products, such as resin dice for tabletop games.

Despite the strain, most US companies with operations in China still intend to expand, driven by competitive pressure and the sheer size of the Chinese market. As Tidalwave’s Johnson puts it:

“None of this stuff is going to be reshored. The US doesn’t have the ecosystem, the people, the tax incentives or the money.”

  • US tariffs
  • trump tariffs
  • US-China relations
  • tariffs
  • United States
  • China

Most Read

Iran exposes Israeli nuclear projects in major security breach

Iran exposes Israeli nuclear projects in major security breach

  • Politics
  • 24 Sep 2025
The poster published by Al-Qassam Brigades, showing all the Israeli captives left in Gaza, September 20, 2025 (Al-Qassam Military Media)

Al-Qassam releases captives 'farewell photo' amid Gaza City operation

  • Politics
  • 20 Sep 2025
27 wounded in Eilat drone explosion amid failed interception

27 wounded Israelis in Eilat drone explosion amid failed interception

  • Politics
  • 24 Sep 2025
Hezbollah's Secretary General Sheikh Naim Qassem delivers a speech commemorating the martyrs of the Radwan Force, September 19, 2025 (Screengrab)

Honoring Radwan Force, Sheikh Naim says Hezbollah devoted despite odds

  • Politics
  • 19 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
China's deputy permanent representative to the United Nations, Geng Shuan,g speaks during a Security Council meeting, Tuesday, September 23, 2025, at UN headquarters (AP)
Politics

Russia, China push UN vote to delay Iran sanctions reimposition

Larijani on
Politics

Iran accuses West of breaking promises, rules out missile restrictions

Portraits of the two former Hezbollah leaders, Sayyed Hassan Nasrallah and Sayyed Hashem Safeiddine, projected onto the Raouche rock during an event commemorating the leaders in Beirut, Lebanon, Thursday, September 25, 2025 (AP)
Politics

Resistance supporters light Raouche Rock to honor Sayyed Nasrallah

Houthi supporters chant slogans during a weekly anti-Israeli rally in Sanaa, Yemen, Friday, September 12, 2025 (AP)
Politics

US gives 'Israel' cover for 'genocide' in Gaza: Sayyed al-Houthi

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS