Most industries in China can't survive US tariffs: Analysts

Most of China's industries cannot survive US President Donald Trump's tariffs at current levels, according to a new analysis by Bloomberg Economics.

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HONG KONG -

Tariffs now set at roughly 40 per cent compare with average industrial profit margins of about 14.8 per cent in 2024.

That gap may prompt more intense price cuts, weakening profits, and — in the worst case — layoffs and potentially a wave of bankruptcies and closures, according to analysts Chang Shu, David Qu and Maeva Cousin.

Among industries most at risk are textiles, information technology and communications equipment and furniture manufacturing.

Of 33 industrial sectors that the analysts considered, only five have margins that are wider than the tariff rates. They include pharmaceuticals, tobacco and oil and gas extraction.

"Some companies with a heavy dependence on the US market may not survive," the analysts wrote in a research note.