Asia Global Institute

Trade war hits foreign companies in China with double tariffs

Sunday, April 27, 2025

Trade war hits foreign companies in China with double tariffs

In a recent Financial Times article, AGI Director Heiwai Tang, shares his perspective on how foreign companies operating in China are facing a double tariff squeeze amid the ongoing trade war between China and the US.

"If they import, they pay the Chinese tariffs. When they export back to the US, they pay the US tariffs," Tang explains, emphasizing that these companies are essentially being “hit twice.” This dual tariff burden, with rates as high as 125% on imported components and 145% on exports to the US, significantly affects foreign manufacturers in China, which account for nearly one-third of China's total trade. Major US corporations like Apple and Tesla are particularly vulnerable.

Read the full article here.

Author

Heiwai Tang

Director, Asia Global Institute

Heiwai Tang

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