Two-Thirds of U.S. Companies in China Expect Big Losses
Survey reveals sharp revenue drops for US companies.
A new survey by the American Chamber of Commerce in Shanghai reveals that U.S. companies operating in China are bracing for significant revenue losses in 2025 due to President Donald Trump’s escalating trade war with Beijing. The annual survey, conducted from May 19 to June 20, 2025, found that nearly two-thirds of the 254 responding companies expect reduced sales in China, driven by new tariffs imposed by both the U.S. and China.
Trump’s administration has slapped an additional 30% tax on Chinese imports, following a peak of 145% before a May 2025 agreement to de-escalate the tit-for-tat tariff war. In retaliation, China imposed a 10% tax on U.S. imports, hitting companies that export to the U.S. or rely on American components for production in China, such as chemical manufacturers. “Tariffs have had a huge impact on our operations,” said Eric Zheng, president of the Shanghai chamber, highlighting the severe disruptions faced by businesses.
Manufacturers are bearing the brunt, with close to three-quarters reporting expected revenue declines in 2025. Industries like banking, which have limited direct trade with the U.S., anticipate minimal impact, with about one-third of respondents expecting no change. The survey underscores U.S.-China tensions as the top challenge for the next three to five years, with Zheng calling improved bilateral relations “our No. 1 ask.”
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The uncertainty surrounding ongoing trade talks between Washington and Beijing is compounding challenges for companies planning for the future. While the Trump administration pushes for a comprehensive trade deal with China, American courts have ruled most of Trump’s tariffs illegal under U.S. emergency powers law. However, the tariffs remain in place as the administration appeals to the Supreme Court, with a decision expected by October 14, 2025.
The survey reflects broader concerns about the economic fallout of the trade war, with U.S. firms facing increased costs and reduced competitiveness in China’s massive market. As negotiations continue, businesses are left grappling with the unpredictability of the U.S.-China relationship, urging both sides to find a path to stability.
