US tariffs hitting equipment suppliers to China
London – The US imposition of tariffs on Chinese tire imports is already impacting companies supplying equipment to the tire industry in China, according to a source at one major international equipment supplier.
“The effect is already felt and I have heard of several cancellations of orders particularly for curing presses and tire building machines,” he said in a written comments to ERJ.
Orders are, therefore, likely to be in short supply: with the Chinese government now withdrawing support for projects to establish new plants in the country.
“Plants that have obtained the approvals before will continue to enjoy the grants, tax exemptions and generous bank loans which have been promised. But there are no new ones expected unless the owners will be prepared to move forward without the government benefits,” the source explained.
The Jan/Feb issue of ERJ will include an in-depth report on this topic. Please send your news and views to the ERJ editor
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