Chinese auto-part maker APT Electronics rethinks global expansion amid Trump tariffs

Although the additional 10 per cent tariffs that Trump slapped on Chinese imports last week will not have “immediate impact” on operations, there would be challenges if the policy remains unchanged, APT chairman David Xiao Guowei told the Post in an interview on Friday. This has prompted a more “prudent and cautious” approach, he said.

The company is also concerned about potential tariffs on goods from Canada and Mexico, where some of its clients operate factories that export to the US. Trump has threatened to impose a 25 per cent duty on goods from both countries, a move that was postponed for 30 days after the countries’ leaders spoke last week.

Since 2023, APT has explored establishing production lines in North America, Southeast Asia, and Europe, company president Hou Yu said at a Friday press briefing. A final decision will account for timing and cost, he added.

Xiao said he is “cautiously optimistic” about US-China relations because “the high-level dialogue and communication channels between Beijing and Washington are still open”. He believes the company will weather the current storm, as it did during the escalating trade war in 2019.