Firms in China gird themselves for bruising trade fight

Local and foreign firms prepare for lengthy feud, as some race to find import substitutes

Bottles of red wine imported from the US in Shanghai. American goods from wine to potato chips are disappearing from some stores in China as importers turn to substitutes from other places. The tariffs have hurt profit margins for American products i
Bottles of red wine imported from the US in Shanghai. American goods from wine to potato chips are disappearing from some stores in China as importers turn to substitutes from other places. The tariffs have hurt profit margins for American products in China. PHOTO: REUTERS
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Chinese and foreign companies braced themselves for the impact from a protracted new trade war after both China and the United States imposed tariffs on goods worth about US$68 billion (S$92 billion) yesterday.

Consumers here also expressed worry that an expanded trade war would have a knock-on effect, not just on the price of goods, but also on job security in the long run.

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A version of this article appeared in the print edition of The Straits Times on July 07, 2018, with the headline Firms in China gird themselves for bruising trade fight. Subscribe