Trade War With China Has Cost US Exports More Than $40 Billion

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When it comes to trade war issue, many people think it’s the China which is losing billions of dollars investments, but that’s not true. However, a new study proves that Chinese imposition of an enormous amount of taxes on US made goods has impacted negatively on export industry. Recently Institute of International Finance did a case study on this topic, and they found that this trade war has cost approximately $40 billion to US export industry. Many businesses have booked a massive amount of losses. Trump administration put a hefty amount of taxes on more than $250 billion worth of Chinese goods on the US soil but to counter attack it China did the same. Both the countries are trying to get ahead of each other. After looking at this data, it seems like US is not the only country which is dominating this trade war. Accordingly, US exporters sent only $4.1 billion worth of goods to Chinese market due to substantial amount of taxes.

Both countries officials currently are having a trade deal, but a few days ago Trump said that the US wouldn’t agree to terms and conditions unless they find it agreeable. The main reason why Trump started this trade war against China is that it thinks Chinese companies are not doing business morally. Accordingly, the US has made some serious allegations on Chinese companies like Huawei of stealing intellectual property. However, so far it seems like exporters from the US might not be happy with this current geopolitical situation.

Retail businesses are already not performing well, and agricultural companies which used to send majority of their products in China now are in a difficult situation. Some experts think Trump administration is eager to sign a trade deal with China because of next year’s elections. Now it will be interesting to see what other options Trump administration has to mitigate the loss which has been suffered by the US exporters.

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Steven Burnett
Being one of the leading news writers of the dailyheraldbusiness, Steven holds a specialization in the domains of business and technology. The passion he has for the new developments in the connected devices, cloud technology, virtual reality, and nanotechnology is seen through the latest industry coverage which is done by him. His take on the consequences of digital technologies across the world gives his writing a modern and fresh outlook.