US President Donald Trump and Chinese President Xi Jinping
The assessment of tariffs imposed on countries around the world by the US President continues. However, in the meantime, Trump has postponed the decision to increase tariffs for 90 days on many countries. But he has imposed 145 percent tariff on China. Meanwhile, economists from all over the world are assessing the impact of this tariff on the world’s economy. According to a leading economist of the United Nations, the global trade may see a decline of about 3% due to the new charges levied by the US. Due to this decline, exports from big markets like the US and China can now move towards countries like India, Canada and Brazil. That is, India is expected to benefit in this tariff war.
Pamela Coke-Hamilton, Executive Director, International Trade Center in Geneva, said on Friday that global trade may decrease by up to three percent due to new business methods and changes in economic integration. “He further stated,” As an example, exports from Mexico which now seems to be moving away from America, China, Europe and other Latin American markets, leading to a maximum increase in exports in Canada and Brazil, and some of the Brazilians are looking forward to India. Is benefiting. ”
US exports reduced by $ 3.3 billion annually by 2029
He said that Vietnam’s exports are moving more towards West Asia, North Africa (MENA), European Union, South Korea and other markets than in the US, Mexico and China. Giving an example of the apparel industry, he said that this region is important in economic activity and employment generation for developing countries. If the world’s second largest apparel exporter Bangladesh applies to the rhythm tariff, then there may be a counter -fee of 37 percent, which may reduce US exports by 2029 annually by $ 3.3 billion.
He also stressed that developing countries should focus on global crisis, climate change or policy changes – diversification, price promotion and regional integration to deal with it. “Even in the time of uncertainty, these countries can not only face crisis, but can also explore long -term preparation opportunities,” he said that these estimates were designed in collaboration with the French Economics Research Institute CEPII, which has been based on the 90 -day fee declaration and the figures before levying additional fees on China.
They estimate that the ‘reply’ fee and initial counter -protests applied by 2040 can reduce the global GDP (GDP) by about 0.7 percent. Countries like Mexico, China, Thailand and Southern Africa will be the most affected along with the US.
China will also be active in business war
In addition, Washington DC -based Asia Society Policy Institute (ASPI) Vice President and Managing Director Wendy Cutler said that China’s announcement to increase the duty on US imports makes it clear that China will also be active in the trade war. He said, “China is now ready to fight a long battle. It has indicated that it can also activate other measures with them in response to the additional steps of the US.” Katla further stated that at present a heavy duty of 145 percent on Chinese imports in the US and 125 percent on US imports in China, which can have a widespread impact on goods trade between the world’s two largest economies.
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