Trade War Harms U.S. and China, Benefits Others

BRUSSELS, BELGIUM – The trade tariff spat between China and the United States has been a “lose-lose” situation for both countries as well as the entire globe. Economic conditions are expected to deteriorate further, according to economists with the United Nations (UN), unless a deal is reached soon. Data from the first six months of the year shows that most of the cost of higher tariffs on China has been passed down to U.S. consumers and firms that import parts and components from the Asian giant. The U.S. measures, however, in place for almost 18 months, have also hit China, costing the country about $35 billion. Chinese firms have seen exports of targeted products fall by 25 percent as competitors from Taiwan, Mexico, the European Union, and Viet Nam have become benefactors of the spat. Korea, Canada, and India have also benefited, with “substantial” gains ranging from $900 million to $1.5 billion. Other South East Asian countries scooped up the remainder of the tariff-hit products, while African countries have seen only “minimal” benefits from the trade war.