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Trade war

US and Japan rethink supply chains as trade war widens

Companies shift production out of China to avoid new tariffs

U.S. imports of clothing from China will come under the next round of tariffs under the Trump administration, a move which is making apparel companies rethink their supply chains.    © Reuters

WASHINGTON -- U.S. and Japanese companies are scrambling to overhaul their supply chains that include Chinese production in order to deal with the escalating trade war between Washington and Beijing as both announce more tariffs on each other's goods.

The U.S.-China conflict is entering dangerous waters, the head of a U.S. industry association said in an email to member companies on May 10 after the U.S. raised some existing tariffs from 10% to 25%. The email also encouraged companies to dig in for a lengthy fight that might include customs and approval delays.

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