Donald Trump has ordered American companies to set business out of China.
According to details, Trump has pressed the US manufacturers to leave China and come back home _But they are planning to go to Mexico or Vietnam instead.
The U.S. and China have been raising tariffs on each others’ goods since summer 2018. Most recently, China imposed duties ranging from 5 percent to 25 percent on $60 billion in U.S. goods on June 1. That move came in response to the U.S. increasing tariffs from 10 percent to 25 percent on $200 billion in Chinese goods May 10, reported CNBC.
The US dollar rose sharply against the Chinese yuan, US equity markets fell and oil prices dropped on Trump’s latest social media salvo against China, Aljazeera reported.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA”, Trump tweeted on Friaday.
“Although several companies with headquarters in the US — including Hasbro, Crocs, and several Walmart suppliers — have been abandoning manufacturing in China, they have been doing so in favor of production in countries like Vietnam”, BuzzFeedNews report read.