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Trump tariffs prompt Chinese firms to cut back US investment plans

A survey by the China General Chamber of Commerce – USA (CGCC) revealed that 50 per cent of Chinese companies operating in the US intend to reduce their investment focus in the country due to the Trump administration's tariff policies, The South China Morning Post reported on Tuesday. The CGCC survey included companies from 11 industries, such as consumer goods and services, energy, industrial firms, real estate, and communication services, with financial companies representing the largest portion of respondents. CGCC is a US-based organisation focused on the American and Chinese business communities. It surveyed nearly 100 Chinese businesses operating in the US during March and April, concluding just before President Donald Trump imposed 145 per cent reciprocal tariffs on Chinese goods, and China responded with 125 per cent retaliatory tariffs. Following weekend negotiations in Switzerland, both nations agreed on Monday to temporarily lower tariffs for 90 days, with US tariffs decreasing to 30 per cent and Chinese tariffs to 10 per cent. Of the companies planning to decrease US investment, 22 per cent indicated they would 'significantly decrease' their US investment focus and intend to suspend or withdraw most investments, while 28 per cent reported a "slight decrease" in priority and said they would consider reducing some investments due to current administration policies. In another survey question, none of the respondents believed Trump's policy would have a 'significant' positive or limiting impact on their US market expansion. However, 50 per cent anticipated a 'moderate hindering effect", while 17 per cent expected a 'moderate promoting effect". US trade deficit swells to record high The US trade deficit surged to a record high in March as businesses accelerated imports ahead of impending tariffs, contributing to the first quarterly GDP decline in three years. According to the Commerce Department's Bureau of Economic Analysis (BEA), the trade gap rose by 14 per cent to a record $140.5 billion, up from a revised $123.2 billion in February. President Donald Trump's broad tariff measures -- including raising duties on Chinese imports to 145 per cent -- prompted a rush to import goods to avoid higher costs. Although reciprocal tariffs with most US trade partners were paused for 90 days, duties on Chinese products began in early April, sparking a trade war with Beijing. US President Donald Trump lauded a 'total reset' in relations between China and the US after the two sides jointly declared a 90-day pause on a portion of their existing tariffs. 'The biggest thing to me is the opening up (of China),' Trump stated. "I think it would be fantastic for our businesses if we could go in and compete.' In a media address, US Treasury Secretary Scott Bessent underlined that 'both sides showed great respect' during the negotiations.