CLOUDY PROSPECTS: Trade conflict between the world’s two largest economies has dampened investments, procurement and consumption, Formosa Plastics Group said

Taipei Times
Date: Oct 10, 2018
By: Ted Chen  /  Staff reporter

Formosa Plastics Group (FPG, 台塑集團) yesterday said it expects to see slower growth this quarter because of the impact of the escalating trade war between the US and China.

With tariff hikes against Chinese exports to the US set to rise from 10 percent to 25 percent on Jan. 1, trade tensions between the world’s two largest economies have dampened investments, procurement and consumption across the globe, group officials said.

Formosa Plastics Corp (台塑) chairman Jason Lin (林健男) said that the company’s revenue this quarter could decline sequentially, reversing a forecast of positive growth given a month earlier.

In anticipation of higher tariffs next year, some customers have begun restocking, while others have turned tentative, opting to exhaust inventories, Lin said, adding that rush orders pushed ocean freight rates higher last month.    [FULL  STORY]