**Beijing**: The recent implementation of tariffs by the US poses significant challenges for European firms in China, with President Jens Eskelund of the EU Chamber of Commerce warning of operational disruptions and supply chain reassessments among its 1,700 member companies.
The recent implementation of sweeping tariffs by the United States is set to have considerable repercussions for numerous European companies operating within China and globally, according to comments made by Jens Eskelund, president of the European Union Chamber of Commerce in China. This announcement follows U.S. President Donald Trump’s signing of an executive order last week that introduced what has been termed “reciprocal tariffs.”
The executive order establishes a 10-percent “minimum baseline tariff,” with certain trading partners facing even steeper tariffs. Notably, imports from China are subject to tariffs reaching as high as 34 percent, while products imported from the European Union will incur a 20 percent tariff.
Jens Eskelund remarked on the response of European businesses amid escalating geopolitical tensions and trade disputes. He noted that many companies associated with the European Chamber have already begun to reassess their supply chain infrastructures. “In light of the tariff hikes, our members are adopting measures such as supplier diversification and localized production in China to mitigate the risks,” Eskelund elaborated.
Despite these efforts, he expressed concerns about the far-reaching impact of the U.S. tariff increase on the operational capabilities of European firms, suggesting it would disturb existing supply chains and introduce substantial uncertainty within the market landscape.
The European Chamber currently has a membership base exceeding 1,700 companies, which includes notable names such as Volkswagen, Maersk, BNP Paribas, Siemens, and Nokia. These members represent a significant presence in China, making the implications of the new tariffs particularly critical for European businesses navigating the complexities of international trade.
Source: Noah Wire Services
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