In Might this yr, the US stated it might increase tariffs on Chinese language semiconductors from 25 per cent to 50 per cent by 2025.
Different tariffs – together with a 100 per cent obligation on Chinese language electrical autos, 50 per cent on photo voltaic cells, and 25 per cent on metal, aluminium, EV batteries and key minerals – went into impact on Sep 27.
Regardless of the associated fee financial savings it will possibly go on to clients from working in Vietnam, IBE Electronics nonetheless has to battle some challenges.
As a result of nation’s nascent supporting business, the manufacturing time is 2 weeks longer there in contrast with its manufacturing facility in China. There may be additionally a further 5 per cent transport price.
POTENTIAL FUTURE IMPORT TARIFFS
Relocating from China may not shield firms from the risks of further escalations within the commerce struggle.
Analysts anticipate the standoff to proceed no matter whether or not Democratic presidential nominee Kamala Harris or her Republican rival – and former president – Donald Trump wins the election on Tuesday (Nov 5).
Nevertheless, beneath a Trump administration, a number of nations might have a purpose to concern the way forward for their commerce ties with the US.
Trump introduced that if reelected, he’ll impose 10 to twenty per cent in duties throughout the board on all imports. That is separate from the tariff of 60 per cent or extra on Chinese language imports into the US that he plans to place in place.
“Many extra Chinese language firms will come to Vietnam sooner or later. Nevertheless, we’re additionally apprehensive about tariffs on Vietnam as properly, in order that’s why we have to have a facility within the US,” stated Ms Xu.
