Billionaire behind ‘American Factory’ firm warns of US exit amid trade friction with China

As one of the world’s largest automotive glass producers, and the subject of an Oscar-winning documentary, Fuyao Glass is a familiar name in the United States. Now, its founder has warned he is prepared to shut down his American plants if trade friction and tariffs cause severe losses.

Responding to questions regarding geopolitical risks at the company’s annual general meeting, Cao Dewang said that the company would not engage in loss-making ventures.

“How much in duties you want to impose is your business,” said the billionaire, who turns 80 next month. “If we encounter unreasonable situations, we’ll simply shut down the [US] factories.”

While Fuyao’s American roots stretch back to 1995, its presence is now anchored by its plant in Moraine, Ohio – a shuttered General Motors factory that Fuyao purchased in 2014.

The 2019 film American Factory documented the site’s transformation, tracing both its role in revitalising a depressed local economy and Cao’s harsh campaign against unionisation.

Today, Fuyao Glass employs thousands of American workers across facilities in Ohio, Illinois and South Carolina, supplying leading automotive manufacturers including General Motors, Ford and BMW in the United States, according to its website.

The company also holds the distinction of being the first Chinese firm to successfully sue the US Department of Commerce, winning a landmark case that virtually exempted Fuyao from anti-dumping duties in 2004.

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Trump promises to bring US manufacturing back from China, but will his tariffs work?

Trump promises to bring US manufacturing back from China, but will his tariffs work?

Cao’s comments earlier this week – widely reported by Chinese media, including state-owned The Paper – came just over a year after US President Donald Trump launched his “Liberation Day” tariffs on major trading partners. The move ignited a renewed trade war with Beijing that saw duties on Chinese imports peak at 145 per cent before tensions de-escalated.



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Tariffs are hurting U.S. manufacturing sector, economist warns

Chief Economist for the Conference Board of Canada Pedro Antunes reacts to the GDP being unchanged in November 2025.

Tariffs are a lose-lose situation for Canada’s and the United States’ manufacturing sector, says a chief economist.

His comments come after Statistics Canada released its November GDP data on Friday pointing to a soft fourth quarter, with the manufacturing sector dragging on the economy after posting a 1.3 per cent decline.

A global shortage of microchips stalled production at a major Canadian auto plant, by 6.4 per cent, creating a “bottleneck” for vehicle and parts output, the agency said.

While Canada’s manufacturing sector is already under pressure from ongoing trade tensions, the fallout is not confined to Canada alone.

“These tariffs are not going to allow for the U.S. to be any more competitive,” Pedro Antunes, chief economist at Signal49 Research, told BNN Bloomberg.

“In fact, they’re hurting our competitiveness North America wide when we think about our positioning on the global stage.”

Antunes said when the U.S. applies tariffs on Canadian steel, aluminum, or auto-related products, the impact extends beyond a single product or sector.

Those materials often cross the border multiple times and frequently return to Canada because of the intricate, intertwined supply chains the two countries have built over decades, he said.

“The problems extend just beyond those segments that are specifically hit by tariffs,” said Antunes.

Antunes added that uncertainty around the tariff dispute is already weighing on hiring, investment, and consumer confidence within Canada’s manufacturing sector.

“All of these things are just suggesting a very lethargic economy, no matter which industries you’re really focused on,” he said.

Trade deal an ‘absolute necessity’ for auto sector

Looking ahead, Antunes said the outlook for the manufacturing sector remains weak, with Statistics Canada signalling just a 0.1 per cent increase in GDP for December.

“What that tells us is, essentially, the economy is flat,” said Antunes.

He warned the auto sector will remain under pressure without a resolution to trade tensions with the U.S., noting that about 85 per cent of Canadian manufacturing is destined for the American market.

More than 1,000 workers were laid off at General Motors’ Oshawa plant. The union representing the workers stated that these layoffs resulted from the company shifting jobs to the U.S.

“If we don’t have free access, and if we have tariffs at 25 per cent on Canadian content, that is not going to alleviate the situation anytime soon,” Antunes said.

“In fact, it likely is going to continue to get worse.”

While Canada has secured smaller trade wins, including a recent agreement with China that benefits the agriculture sector, Antunes said those deals are not enough to offset restricted access to the U.S. market, which still accounts for roughly three-quarters of Canada’s total trade.

“The trade deal is an absolute necessity for the auto sector. We are hopeful that we’ll see some signs or some settlement of a trade deal, but we’re not seeing that pan out in terms of increases until next year,” said Antunes.

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US warns South Korea and Taiwan of 100% tariffs if they refuse to invest in American manufacturing

Howard Lutnick. Photo: Bloomberg

U.S. Secretary of Commerce Howard Lutnick issued an ultimatum to leading global semiconductor manufacturers. During an event in New York State on Friday, January 16, 2026, he made it clear that access to the American market for Taiwanese and South Korean companies would depend on their willingness to build factories within the United States. This was reported by Bloomberg, writes UNN.

Details

The Trump administration plans to use tax pressure as the main incentive for relocating high-tech facilities. Lutnick emphasized that companies that ignore calls for investment will face a doubling of the cost of their products at the border.

Everyone who wants to create memory has two options: they can pay a 100% tariff or build in America. If they don’t build in America, the tariff will likely be 100%.

– stated Howard Lutnick.

Who is the pressure aimed at?

The warning primarily concerns the market leaders in memory chips and components for artificial intelligence:

• Samsung Electronics and SK Hynix (South Korea);

• TSMC and other leading Taiwanese firms.

This statement was made against the backdrop of the groundbreaking ceremony for a giant factory of the American company Micron Technology, which is already investing billions of dollars in the development of domestic production in New York.

New White House strategy

Although President Donald Trump has so far refrained from immediately imposing tariffs on semiconductors, the Department of Commerce is already conducting aggressive negotiations with partners. The administration’s goal is to radically reduce U.S. dependence on imports of critical technologies and restore the dominance of American industry. 

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