European exporters in China shift trade to avoid US tariffs

FILE - In this Wednesday, March 21, 2018 file photo the logo of German car manufacturer BMW is pictured in Munich, Germany. Automaker BMW said Monday July 9, 2018, it will have to raise prices on the U.S.-built SUVs it sells in China due to 40 percent import tax on cars from the United States, in retaliation for higher tariffs on Chinese goods imposed by President Donald Trump.((AP Photo/Matthias Schrader, file)

Business group says European companies exporting from China changing supply chains to avoid higher American tariffs

BEIJING — A business group says European companies that export from China are changing the global flow of their goods to avoid higher American tariffs in a sign of the spreading impact of the U.S.-Chinese trade war.

The president of the European Union Chamber of Commerce in China, Mats Harborn, said Tuesday one of its members moved final assembly of goods for the American market from China to a newly created U.S. company.

The Trump administration's 25 percent tariffs on medical equipment, electronics and other goods from China apply to exports made by U.S. or European companies as well as Chinese suppliers.

Harborn said other European companies are "scrambling to readjust supply chains" so that goods bound for the United States don't pass through China.

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