Many Japanese businesses caught in the crossfire of the U.S.-China trade war are facing an unsavory dilemma: Either make massive changes to how their products are assembled or bide their time until a compromise between the world¡¯s two largest economies is reached.
While many businesses have chosen the latter strategy, the U.S. decision Thursday to impose a 25 percent tariff on an additional $16 billion in Chinese exports ¡ª bringing the total levied by each side in excess of $100 billion ¡ª may continue to push businesses operating in China toward a more drastic route.
¡°If tariffs are instituted for a long period of time, some companies will have to make the management decision to move their manufacturing bases out of China,¡± said Hiroshi Kubotani, a senior economist at Nippon Life Insurance Research Institute.
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