Moscow, 5 APR — “News. Economy.” Recently experts speak about a trade war between the US and China, which affects the economy of both countries.

At the end of September 2018, the U.S. imposed a 10% duty on Chinese goods worth $200 billion as a result the total value of goods affected by the duties, increased to $250 billion

Beijing has imposed retaliatory duties on American products worth $60 billion, increasing the total cost of the affected duties of goods to $110 billion

As previously wrote News. The economy, the trade war has already adversely affected the global economy. China’s GDP slowed sharply, in the US there were signs of a slowdown and debt market and at all points to the coming recession.

Perhaps part of the reason trump can no longer put pressure on China’s new duties, as this will further hit the economy.

But new presidential elections, and now trump has a very good chance of re-election.

Below we will talk about those industries that will suffer the most from a trade war between the US and China. Automotive

One of the industries that are most affected by tensions between China and the USA, it is automotive.

In 2018, China raised tariffs on U.S.-manufactured cars imported into the country, from 15% to 40%.

After that, car sales in China fell sharply.

Automakers, such as Tesla Inc., experiencing negative consequences of tariffs.

The company was forced to raise the cost of the Model S and Model X for $20,000 in July last year after the introduction of a new round of tariffs.

The trade tensions can be very painful, especially for Ford, is already widely available on the Chinese market.

Telecommunications and technology

The Chinese smartphone manufacturer and telecommunications company Huawei competes with Apple Inc. Many months before the beginning of trade disputes between the two countries.

So, last year, financial Director of Huawei was arrested in Canada on charges of trying to circumvent sanctions imposed on Iran.

By itself, this incident was very significant in relation to two competing companies, he also has a more global importance in the context of a trade war between the US and China.

China responded that he had filed a lawsuit against Apple via the Qualcomm.

In the end, the chip maker Qualcomm has won a lawsuit against Apple in China. The company demanded to ban the sale of several models of iPhone in the country.

In Qualcomm stated that it had received a decision of the Intermediate people’s court of Fuzhou city on the ban on the import and sale of iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 and iPhone Plus X.

The court found that Apple devices violate two patents Qualcomm technology photo editing and touch control.

It is noted that now Apple and other American companies that will do business in China must be careful, as the trade war may make adjustments to their plans. Agriculture

Agricultural products, including grains, seeds and fruit are the top 3 major commodities that are exported from the U.S. to China, according to the Office of the U.S. Trade representative.

In 2017, the United States exported these products to the Chinese market in the amount of approximately $13 billion

With the growth of tension in trade relations between the two countries really at risk was the delivery of soybeans.

Traditionally China is the largest importer of soybeans from the United States. Billions of dollars go to development of this sphere annually.

Last year, the Chinese authorities imposed additional tariffs on the import of soybeans from the United States.

American farmers are in a difficult situation, as they have formed huge amounts of soy beans, which they could not sell. Financial company

Despite the fact that financial and investment institutions do not suffer direct negative impacts from introduced by trump in tariffs, they are still reviewing your business, investments and portfolios, trying to assess the potential risks and negative consequences of a trade war between the two countries.

According to the Tax Foundation, tariffs on $37.5 billion will lead to lower GDP and wages by 0.1% and employment by 79 000 jobs in the long term.

As a result, the number of investment companies based on these predictions, began to reduce its U.S. assets and look for opportunities abroad.

The energy sector

Introduced tariffs also negatively affect the energy sector, where an important role is played by deliveries of steel and aluminum for various projects, including the construction of pipelines, wind and solar installations.

The introduction of the proposed trump tariffs on steel and aluminium means not only higher costs in the implementation of these projects, but also rising prices for consumers.

In addition, in the long term this can lead to a decline in demand for “clean” energy. The consumer sector

Companies that produce consumer goods also experience the negative consequences of a trade war between the two countries.

In particular, the introduction of tariffs had a negative impact on a number of consumer goods of China.

In this sector also saw a sharp increase in credit risk.

Tariffs also affected the real estate market of China, which after two years of continuous growth showed a decline due to the tightening of business conditions, restrictive measures of control over prices and greater competition.

Tax rates increase faster than expected pace, and inflation leads to the fact that Chinese developers are looking for opportunities abroad.

If we talk about USA, but here, companies are experiencing difficulties.

Delivery of products under the Gillette brand already declining, and the company has to survive in the fierce competition, especially in the field of luxury products.

With the introduction of tariffs the situation with the Gillette products will be very sad, as this will lead to higher costs for raw materials, such as metal for the production of blades.

Another American company Nike uses cheap labor in Asia. While Vietnam was the main supplier of athletic shoes, because nearly half of the brands are produced in this country.

With the tariff of the shoes produced in Vietnam, it may be too expensive for American consumers.

If other countries start to respond to the actions of China, the company’s products will be in the area of risk and in foreign countries.

In particular, Nike could lose up to 18% sales growth in China, which was observed during the last couple of years.

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