Gester Instruments | Professional Textile, Footwear and PPE Testing Equipments Manufacturers Since 1997
Under the issue of international trade, Vietnamese fishermen benefit!
2021-08-16
Gester Instruments
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According to CNBC reports, the trade dispute between Washington and Beijing has been around for more than a year. Economists at Nomura have found evidence that the United States and China have reduced imports of certain goods from each other in order to avoid raising tariffs. The same product is being sourced elsewhere. Nomura Securities said that so far, Vietnam has become the biggest beneficiary of the transfer of trade flows. According to estimates, these new purchases account for an estimated 7.9% of its GDP. At the same time, with the tit-for-tat tariff hikes between China and the United States, the cost of mutual imports has also increased. Because some exporters in the United States and China may be willing to absorb some of the additional tariff costs, some multinational companies may choose to re-produce. But trade data show that over time, the final reaction may be--trade diversion. So far, the United States has imposed 25% tariffs on US$250 billion of Chinese goods, and US President Trump has threatened to impose the same high tariffs on remaining imports from China, worth about US$300 billion. In retaliation, Beijing has also raised tariffs on billions of dollars worth of American goods. Nomura said that in addition to Vietnam, the other major beneficiaries of the Sino-US trade war are Taiwan, Chile, Malaysia and Argentina. Vietnam and Taiwan mainly benefited from additional exports to the United States, while Chile and Malaysia benefited by exporting more goods to China.
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