Xi can make life tough for US companies from Apple to Walmart

HONG KONG (June 20): China doesn’t import enough from the US to match Donald Trump’s tariffs dollar for dollar, but President Xi Jinping can still squeeze American companies in other ways in retaliation.

American businesses from Apple Inc. and Walmart Inc. to Boeing Co. and General Motors Co. all operate in China and are keen to expand. That hands Xi room to impose penalties such as customs delays, tax audits and increased regulatory scrutiny if Trump delivers on his threat of bigger duties on Chinese trade. US shares slumped Tuesday as part of a broad sell-off in global markets in response to Trump’s threat.

The total amount of US goods exports to China only amounted to US$130 billion last year, meaning Trump’s potential tariffs on US$250 billion or more of Chinese imports can’t be matched, at least directly. But if you measure both exports and sales of US companies inside China, the US has a surplus of US$20 billion with China, according to Deutsche Bank AG.

---

Related Stories

• Trump's tariffs hurt more than just China
• Bitcoin resumes advance, rekindles US$100,000 milestone optimism
• That's what friends are for

---