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Under the problem of international trade, Vietnamese fishermen benefit!
Washington's trade dispute with Beijing has been in the works for more than a year, and economists at Nomura have found evidence that the U.S. and China have reduced imports of certain goods from each other to avoid higher tariffs, according to CNBC. The same item is being sourced from elsewhere. Vietnam has so far been the biggest beneficiary of the diversion of trade flows, with these new purchases estimated at 7.9 percent of its gross domestic product, Nomura said. 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 restart production. But trade data suggest that over time, the eventual response could be -- a trade diversion. The U.S. has so far imposed 25 percent tariffs on $250 billion of Chinese goods, while President Trump has threatened to impose equally steep tariffs on the remaining imports from China, worth about $300 billion. In retaliation, Beijing has also raised tariffs on billions of dollars worth of U.S. goods. Besides Vietnam, the other major beneficiaries of the U.S.-China trade war are Taiwan, Chile, Malaysia and Argentina, Nomura said. Vietnam and Taiwan benefited mainly from additional exports to the United States, while Chile and Malaysia benefited by exporting more goods to China.
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