Supply Chain Management / Manufacturing News

Association of Equipment Manufacturers rep discusses U.S.-China trade war


May 20, 2019

There's one solution to this trade war that President Trump has tweeted repeatedly over the past few days. He says Americans don't have to pay tariffs on Chinese goods if they buy the same products from other countries or, even better, from the U.S. He said today that goes for U.S. manufacturers, too.

Many U.S. manufacturers do get their parts from China. To understand how easy it would be for them to make a swap, we turn to Kip Eideberg. He's with the Association of Equipment Manufacturers.

CORNISH: What would it take to make the switch? Or are you arguing that they don't want to, it's not financially appealing to them?

EIDEBERG: Well, I think anytime politicians try to micromanage how businesses run their supply chains, it doesn't end well. But I will say that, you know, as an industry, we do agree with the precedent that it is time for China to make some changes to their industrial and to their trade policy. They haven't been a good faith factor over the years.

But we should be focusing on negotiating with China, looking for structural changes, not doubling down on tariffs or forcing companies to change their supply chains.

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