US-China Trade War Continues to Disrupt Supply Chains

U.S. companies have accepted tariffs as a new way of doing business.

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The U.S.-China trade war is continuing to disrupt supply chains, despite officials discussing trade tensions. 

For Seattle-based electronics manufacturer, Audio Control, supply chains have already shifted away from China as it couldn't afford to pay steep tariffs on products. 

"That's a lot of money that's not being invested in our company, that's not being invested in growth, not invested in trying to improve efficiencies and employ more people as we grow in size," CEO Alex Camara says. "It's not Chinese people that are paying tariffs. People need to realize that." The company has begun sourcing its materials from factories in Thailand and Vietnam, furthering increasing prices. 

Sage chandler, vice president for international trade for the Consumer Technology Association claims that many companies have accepted the tariffs as a new way of doing business, taking control of their own supply chains instead of waiting for a political solution, Yahoo  reports. However, American companies are facing significant challenges if they have manufacturing hubs outside of the U.S. Nearly 33 percent of companies surveyed in a report by McKinsey and Company said that uncertainty over trade policy was a top concern, while nearly half said their companies would shift their global footprint in response. 

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