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Trump's tariff could kill thousands of small businesses in China

China

Trump's tariff could kill thousands of small businesses in China

Bloomberg Published on Mon, Mar 20, 2017 / 8:11 AM GMT+8

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SHANGHAI/HONG KONG (March 20): Higher labor costs and stricter regulations keep nudging Eric Li’s glass factory in southeast China toward insolvency, even though his lampshades are on the shelves at Home Depot. President Donald Trump’s threatened tariff on his goods may be the final shove.

Three of the four furnaces at Huizhou Baizhan Glass Ltd.’s dusty plant sit dormant, and the workforce making lampshades and vases for export to the US has been slashed to 150 from about 1,000 just a decade ago. Profit margins are shrinking, and Li said the company started by his Taiwanese father in 1991 is hanging by a thread.

“If there’s a tariff, it’s game over for us,” said Li, 42. “We don’t have the ability to take on extra costs.”

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Trump's tariff could kill thousands of small businesses in China

China

Trump's tariff could kill thousands of small businesses in China

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Trump's tariff could kill thousands of small businesses in China

China

Trump's tariff could kill thousands of small businesses in China

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