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Chinese and US consumers feel effects of trade tension: survey

By Zhong Nan | chinadaily.com.cn | Updated: 2019-06-27 16:14
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A woman shops at a Walmart Neighborhood Market in Levittown, New York, the United States. [Photo/Agencies]

About 75 percent of Chinese and 60 percent of US consumers said they have noticed price increases on household goods since tariffs were increased during the Sino-US trade dispute, said a report from international advisory company Brunswick Group.

Brunswick surveyed 1,000 consumers in both the US and China online from June 5-6.

Mei Yan, a senior partner and chair of Brunswick China, said the ongoing US-China trade tensions are presenting significant risks for both Chinese and US businesses.

"But, despite stark differences, US and Chinese consumers find some common ground. Overall, both Chinese and US consumers are optimistic that a trade agreement will be made in the next year, and show strong support for bilateral trade due to a belief that both countries benefit from the exchange of goods," she said.

The survey found that there is broad support for bilateral trade in both countries. Strong majorities of consumers said that people in both countries benefit from the exchange of goods between the US and China.

Despite the differences, neither side is willing to cut the other off as a trading partner.

There is optimism that a trade agreement will be made. Nearly all US and Chinese consumers said that addressing bilateral trade is a priority for their country.

Few predicted a trade agreement will be signed in the next three months, but majorities believe a deal will be reached within the next year, according to the report

Tim Payne, senior partner and head of Asia at Brunswick Group, said consumer sentiment can potentially increase political pressure to broker a deal.

"An overwhelming majority of consumers on both sides said that addressing bilateral trade should be a priority for their country, that consumers are the biggest losers when tariffs are raised and that already the prices of goods imported from the other country have increased," Payne said.

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