The ongoing trade war between China and USA is a source of great excitement for the media outlets since something like this has not happened for a long period of time between the two countries. However, at the same time, it is a source of great concern for the businesses who have to rely regularly on purchasing their products from the Chinese suppliers and Chinese manufacturers. China is one of the major trading partners of the USA and the annual trading between the two countries is more than 500 billion dollars. A number of businesses in the United States relied on Chinese suppliers mostly in the field of Electronics such as Printed Circuit Boards, in order to offer other services to the customers in the United States.
Similarly, since labor cost in China is cheaper as compared to in the United States, a number of companies were operating their manufacturing plants in China instead of operating them in the United States. However, due to the ongoing trade war between the two countries both USA and China have increased tariffs on imports from respective countries due to which the advantage of cheap labor that businesses had in buying from China is now going to vanish because the tariffs of almost 25% on different products are going to drive up the prices to a greater degree.
It is expected that businesses may have to pay a lot more than what they might pay in case they bought their product from the USA. Buying from China is becoming highly nonproductive for businesses since the price advantage factor cannot be counted anymore. It is also expected that if the trade war persisted for a longer period then and the prices are going to rise even further. The charges on delivery services from China to the USA are also going to rise because the trade was has affected every industry around the world.
The electronics industry has also been hit badly by the ongoing trade war since a number of high tariffs have been imposed on the import of electronic goods from China. It is, therefore, advised that the local USA businesses should purchase their printed circuit board supplies from manufacturers in the USA as compared to relying on the Chinese suppliers. In this way, they will be able to offer high-quality Services to their clients in the country while also manage to save money, which they may lose in case they relied on Chinese suppliers.