News Desk: China’s industrial sector is teetering under the weight of U.S. tariffs, with a new Bloomberg Economics report warning that rising trade pressure could lead to widespread factory shutdowns, mass layoffs, and financial collapse across key industries.
The report, authored by economists Chang Shu, David Qu, and Maeva Cousin, reveals that these tariffs drastically outpace the average profit margin of Chinese industries—estimated at just 14.8% in 2024.
The stark gap, analysts caution, could force companies into aggressive price cuts, profit erosion, mass layoffs, and even widespread bankruptcies.
Industries most at risk include textiles, information technology and communication equipment, and furniture manufacturing—sectors heavily reliant on U.S. exports. Out of 33 industrial sectors analyzed, only five—such as pharmaceuticals, tobacco, and oil and gas extraction—were found to have profit margins wide enough to weather the tariff storm.
“Some companies with heavy dependence on the U.S. market may not survive,” the report said. “Others will struggle to adapt—through wage cuts, layoffs, or dumping cheaper goods into domestic and international markets.”
In a further geopolitical twist, the report also notes that former U.S. President Donald Trump has warned Russia of “very severe” tariffs on its remaining trading partners if Moscow does not end its war in Ukraine within 50 days—hinting at even broader global economic repercussions.
