US Imports from China Fall by 30 Per Cent Due to the Trump Trade War
Last updated on December 3rd, 2018
The Trump trade war with China has been significantly affecting the US imports. A research from UBS revealed that the President’s sanctions on goods from China have been noticed to have an effect on US-China trade.
US import data for $34 billion of products, which fell within the first tranche of US tariffs on July 6, were put into review by the analysts. Besides, it was noticed that there has been a “sharp and unambiguous” decline.
UBS said, “”The modest uptick in September data, however, gives us hope that the adjustment period for these imports has now drawn to an end.”
The story was quite similar for the products in the second tranche of tariffs on an added $16 billion worth of goods, which was carried out on August 23.
In August and September, US imports of those products fell by 32 per cent. However, the figure could be overstated because in July, the imports of those items jumped up.
“The fall relative to the May levels is a more modest but still large 20 per cent,” said UBS.
Results obtained from the first round of tariffs have led to the question of what the fate of imports on the $200 billion of added tariffs that were implemented on September 24 will be.
However, since the time frame is more recent, UBS has said that it is too early to make calculations regarding the potential negative effects.
In the three months prior to the implementation, it was noted by the analysts that the importation of products in those tranches “accelerated sharply.”
Although, all of that could not be attributed to the fact that customers will stock up before the tariffs came into effect. This is in view of the fact that imports were already picking up in July, even before any announcements were made regarding the third tranche.
A major driving force behind the three-month increase was the US imports of tech devices, particularly disk drives and tech devices.
Paying closer attention to the key tech products, UBS said that it is difficult to conclude whether the increase was because of a pre-tariff surge or if it was merely an extension of the broader trend growth for those products seen in recent years.
The group stated, “Nonetheless, we do think that there is a positive boost pre-tariff, but that that lift is small.”
According to the Chinese trade data, the overall trade surplus was $34.01 billion for October. The country recorded a trade surplus of $31.78 billion with the US in the previous month.
Despite the effects of the ongoing Trump trade war with China, its trade surplus with the US has remained at record highs so far this year.
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