How US Tariffs on China Reshaped Financial Flows: Short-Term Gains vs. Long-Term Risks

By Professor Andrew Azarov, Business and Economics, International Business academy Consortium (UK)

The recent escalation of US tariffs on Chinese goods has done more than just increase prices—it has fundamentally shifted how financial flows move between corporations, the federal government, and international suppliers. While Washington now collects billions in tariff revenue directly from importers, this policy has also reshaped the profitability of US companies, the cost burden for consumers, and the long-term structure of global trade.

The Old Model: How US Firms Benefited Before Tariffs

Before the recent wave of tariffs, American companies enjoyed a relatively predictable flow of trade and taxation:

• US companies imported goods from China and resold them domestically.
• Profits stayed in the private sector, taxed later through corporate income tax.
• Consumers benefited from low-cost imports.
• The government collected revenue primarily through conventional taxation rather than trade barriers.

This system allowed for stable margins for US companies, which, in turn, contributed to federal revenue via traditional tax mechanisms.

US Companies Slash Investments in China Amid Record-Low Confidence

By Professor Andrew Azarov, Business and Economics, International Business academy Consortium (UK)

According to a recent survey by the US-China Business Council (USCBC), American companies’ investment plans in China have plunged to record lows in 2025: only 48% of firms intend to invest in the country, compared with 80% in 2024 (weforum.org). This marks the lowest level since the survey began in 2006 (taipeitimes.com, apnews.com).

Conducted between March and May 2025, the survey of 130 major US firms revealed a sharp decline in optimism. Investment scale is shrinking, and prospects for a recovery in US-China relations remain bleak. Many companies have already shifted into a “risk-mitigation mode” — freezing investments and reassessing strategies (apnews.com).

🌐 Tariff Surge and Political Turbulence 

• Tariffs have spiked since April, rising from 25% to 50% in certain categories (ainvest.com, barrons.com, ft.com).
• In USCBC’s survey, tariffs have jumped from 8th to 2nd place among business concerns, second only to overall bilateral tensions. In 2024, tariffs were only ranked eighth (weforum.org).
• Nearly 70% of firms are directly affected by tariffs, while 88% cite the deteriorating relationship as a major challenge (weforum.org).
• Over one-third of companies report sales losses from US tariffs; 27% have been hit by Chinese tariffs — up 21 percentage points year on year (weforum.org).

Although negotiations in Geneva and London brought temporary relief through partial tariff rollbacks, the absence of a long-term settlement leaves businesses facing deep uncertainty (apnews.com, deccanchronicle.com).

Startup World Cup Championship 2025 WINNERS

The 25th Anniversary Startup World Cup Championship 2025 in the Maldives is a unique opportunity for both seasoned entrepreneurs and young startup innovators to elevate their businesses, expand their networks, and gain global recognition. 

The most significant event of the year in the world of education is the global arena for showcasing your knowledge, creative ideas, and business skills - the Startup World Cup Championship!

The results of the Startup World Championship 2025 show the triumph of intelligence over the mundane, the triumph of action over laziness, and the triumph of team play over loneliness.

So, the results of the year are as follows:

Global Business Week 2025: Charting the Future

Malé, Maldives – July 7-15, 2025 – The 25th anniversary of Global Business Week (GBW), the premier gathering of the international business elite, concluded triumphantly on July 15th, 2025, against the breathtaking backdrop of the Maldives. Held from July 7th to 15th across several idyllic island resorts, this landmark edition successfully blended high-level strategic discourse with unparalleled networking opportunities, solidifying its status as the indispensable forum for shaping the future of global commerce.

Celebrating a quarter-century of fostering innovation and driving sustainable growth, GBW 2025 lived up to its prestigious reputation. Over 250 top entrepreneurs, visionary CEOs, influential investors, and leading innovators from more than 35 nations converged in this tropical paradise. The stunning setting of turquoise waters, pristine beaches, and luxurious resorts provided more than just scenery; it fostered a unique atmosphere of openness, collaboration, and forward-thinking energy.