Businesses are already girding for next phase of the US-China trade war
trade war between the world's two largest economies, Easy Signs would now be hiring dozens of workers at its factory in Allentown, Pennsylvania. It would be readying plans to build a second plant somewhere out West — Salt Lake City was a contender — generating another 100 jobs.
Based in Australia, Easy Signs manufactures banners and marketing installations for corporate events, using huge printers to press logos and slogans onto rolls of cloth. Its American business has been growing 70% a year. Still, the company is putting off an expansion.
Its cloth signs are displayed on aluminum stands made in China. Those products are now subject to a series of tariffs reaching as high as 365% under a policy set in motion by former President Donald Trump and continued by the Biden administration in the name of protecting American industry from Chinese government subsidies.
The costs of imported components could increase further should Trump win November's presidential election and follow through on his threat to add a tariff of 60% or more on all Chinese goods, and 10% to all imports.
«That's definitely a scary concept,» said Andy Fryer, co-founder of Easy Signs. «The whole feasibility goes out the window.»
In interviews with two dozen American manufacturers, retailers and shipping agents, many said they were holding off on investments and expansion given the uncertainty over tariffs on imported products and parts — especially on those shipped from China. If Trump wins the election, the potential for further disruption is
