The trade value of goods for both export and imports of the United States with china has decreased by almost half within just 7 months due to tariff wars between both countries. According to Learnbonds, the trade value has declined by 45.12% between August 2019 and March 2020.
Last year in August the total trade value was $50.62 billion with imports at $41.19 billion, while exports were $9.43 billion. Now in March 2020, the value of the US trade in goods with China was around $27.78 billion including imports totaling to $19.81billion and exports at $7.79 billion.
But in August last year, the value started declining and then again rose in October to $49.04 billion. And this year’s total trade value in goods has dropped by about 32.09% between January and March.
The trade value figure shows that imports are more impacted than exports. Imports have suddenly fallen while exports largely remain constant and the drop is expected to continue.
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China’s Export Value Remained High Compared to the US
The researchers compared the data of the monthly value of exports of the US and China from April 2017-March 2020.
Chinas total export value stood at $7.27 trillion while the United States value was $7.18 trillion, which shows a percentage difference of 1.2%. The US export value remained constant and the highest value of export was at $213.3 billion and the lowest was $187.7 billion in April 2018.
In January and February, the value of export of China was highest at $292.45 billion. The Lowest value was registered last year in February at $135.24 billion and, from May 2019 China’s export value remained constantly high as compared to the U.S.
The trade value decline with China and trade war emerged between both the countries, when President Donald Trump waged to rewrite America’s trading terms and blamed China for engaging in unfair trade practices while on the other hand, China also becomes offensive and accused the US of attempting to sabotage its rise as a global economic powerhouse. Both countries the United States and China have placed stiff tariffs on hundreds of billions of dollar worth on each other’s goods.
Many economists faulted U.S. tariffs as derailing while others want more tariffs to settle trade imbalance between both countries.
Effect of Covid-19 on Import and Export of US and China
The coronavirus pandemic affected imports and exports of both countries. Trade war affected the US, it brought struggles to farmers and manufacturers and high prices for consumers. Though in some countries it caused economic damages, many countries also gained from it in getting market stability.
Before the pandemic, the trade war between the US and China started calming but after the epidemic china was held responsible for the outbreak and it affected the trade.
Due to the crisis, production has been shut leading to increased demand for goods. The service industries have been affecting as tourism industries are shut and, a major decline in international travel weighed on import and export as flights are canceled, lead to decline revenues from both countries.