A new study released this week found that, in light of trade tensions between the two countries, Chinese consumers are buying fewer products from the United States. The survey, released by London-based firm Brunswick, polled 1,000 American consumers and 1,000 from China to find out how the ongoing “trade war” was impacting buying habits.
Continued tensions risk U.S. business’s bottom line
Brunswick’s report found that while 77% of Chinese consumers often buy American goods, 56% have begun to avoid buying U.S.-made products to show their support for China. Moreover, 41% reported buying less because of tariff-related price hikes on American products. Plus, 68% of respondents in China said their view of American companies has grown more cynical as a result of the trade dispute between the two countries.
This report comes as China and the U.S. have imposed tariffs of up to 25% on billions of dollars worth of products over the last year. And although government officials from both sides continue working toward a solution, the survey finds that consumers believe they will pay the price.
Consumers in both countries believe they are impacted most
Respondents in both countries reported noticing increased prices on household goods since tariffs on American and Chinese goods increased. In addition, the majority of consumers surveyed in both countries thought consumers suffer the most in light of trade tensions (over businesses and government entities).
However, most of the people surveyed agree that achieving a trade deal between China and the United States is essential for both economies. In fact, 86% of American consumers and 97% of Chinese consumers stated that addressing bilateral trade is a priority.