Who all are suffering from this?
The global economic slowdown is happening and is spreading to the United States.
Consequences of Global slowdown
Points to note:-
The US-China trade was escalating the slowdown
What is trade war?
Sigh of some relief
Who will be benefitted with trade war?
Although most market experts believe that the trade war is detrimental to the world economy, but if China needs commodities instead of US goods, it will prompt the export growth of Latin American countries and Australia. The trade war creates potential room for other trade partners to expand their own exports, some countries can indeed benefit from China’s tariffs on US goods.
The current export tariff on American soybeans is 25%. China is known to be the world’s largest importer of the crop and the US has been its second largest supplier. This will negatively impact the US soybean farmers and Chinese pork producers who are relying on agricultural products to feed livestock.
South American market is the underlying cause of soybean yield increase and Brazil as China’s largest supplier of soybean could be one of the major beneficiaries. At present, there are 75% of soybeans go to China. However, it still cannot fully replace the US ‘s supply.
Latin America Countries（Argentina, Paraguay and Uruguay）
Argentina’s soybean accounted for 17.5% of Argentina’s total exports. It is also in a favorable position as the world’s third-largest soybean exporter.
smaller soybean exporters- Paraguay and Uruguay.
Each year, the United States exports more than 354 million liters of whiskey to the world. It is the second largest whisky supplier in China after Scotland and sold 926,384 liters to China in 2016，ranked 32nd in the market. These tariffs will still hit British and European business in some other parts of the US – so the benefit of this boost to an industry is unlikely to outweigh the costs of other industries.
Another victim of the tariff war is American wine, which will be subject to a 25% tariff if the threat comes into effect. According to Rabobank International, China is the ninth-largest wine buyer in the US. In 2016, the United States imported about 76 million dollars, and its global exports totaled 1.57 billion dollars.
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