Sunnah of the Chinese -US trade war.
reports
Hossein Shirzad, Agricultural Development Analyst in a dedicated note for Mehr News Agency At the same time, an action against some US companies and intensified export controls reacted to these tolls.
The United States has continued to change trade from China and other economies such as Mexico and Vietnam. In some cases, this is because these economies form a middle step in the trade flow between China and the United States.
European economies have departed from trade with Russia and have increased trade with other partners, especially the United States. Developing economies, instead of advanced economies, now form China’s largest imports and exports. Economics such as the Southeast Asian Association (ASEAN), Brazil and India continue to strengthen trade relations throughout the geopolitical spectrum. The 5 % tariffs that Trump imposed on China is higher than what many analysts expect and could basically change the relationship between the two economies after decades of interdependence.
Challenges for businesses with root supply chains in China are multiple, because they are involved not only with unexpected US effects on China’s imports, but also on other Asian countries. To circumvent existing tariffs, some Chinese and multinational companies have moved their production to other parts of Asia. But Trump’s new tariffs on other Asian countries that were announced will also harm China, as Vietnam will face 2 % and Cambodian goods at a 5 % tariff.
The important point is that the 5 % increase in tariffs on Chinese goods should be in addition to the 5 % tariffs imposed in the past two months and previous tariffs. In the view, international trade experts at the Patterson International Economic Institute, overall, would result in a average tariff rate on China’s imports to 5 %. This is beyond the 5 % tariffs that Trump had threatened to apply to China during his campaign.
US Treasury Minister Scott Bosent confirmed in an interview with Bloomberg that the goods imported from China would now face an effective 5 % tariff rate of 5 % plus the newly imposed 5 % rate. Trump’s tariffs could affect China’s trade.
The trade war that US President Donald Trump has intensified in his second presidency is a challenge for all Asian, large and small economies in an age that is expected to bring the most populous economic growth in the world.
mass production, export and free trade into the conversion of China and other Asian countries into economic power plants in the past decades. But Trump’s tariffs aimed at forcing companies to maintain or operate their factories in the United States will eliminate business agreements that are often carried out at a lot of political costs for business partners. Despite the decline in trade since the start of Trump’s trade war with China during its first presidency, the US trade deficit continued to increase and reached $ 1.5 billion last year.
China, the world’s # 5 economy, has strongly relied on export to compensate for poor demand. The ruling Communist Party has prioritized automobile exports, especially electric cars and batteries, but tariffs on car exports and 4.8 percent of electric cars have actually closed the US market for its carmakers.
China is the second supplier of auto parts to the United States after Mexico. Now China’s tariffs on a number of US agricultural products have been officially implemented, the latest retaliation in the trade war expanding between the world’s top two economies. China’s willingness to use food as a mutual action against the United States, which is historically one of its greatest suppliers, emphasizes the success of the government in boosting agricultural self -sufficiency and the impact of the economy on demand.
agricultural tariffs, ranging from 5 % to 5 % in a wide list of items including cereals, proteins, cotton and fresh products follow the initial focus of energy and critical metals. Soy imports from 5 US companies as well as all American wood purchases have also been stopped. In a separate move, Beijing imposed retaliatory tariffs on a range of Canadian agricultural goods that will be implemented on March 5. But ensuring that 1.5 billion citizens are sufficiently fed is still at the forefront of Chinese policymakers, while China is a key export market for predominantly Republican states in the Central Western Agricultural Belt, Beijing’s efforts to re -configure the post -war trade chains.
International litigation and prices of strategic goods
The disappointing improvement of the Chinese economy after the epidemic has brought a clear point, diversity in providing a lot of food. On the other hand, countering the impact of the surplus of domestic supply has become more urgent. The price of local wheat is about the lowest in the last 5 years and the import of corn has declined. The latest data shows that a sharp drop in prices due to a sharp drop in food has affected consumers. Of course, the government has responded by trying to protect its farmers. Businessmen have been asked to limit the purchase of overseas cereals, including the atmosphere and the Sorgum, while the soy cargo has been delayed.
Beijing’s passion for reviews and commercial complications in recent months, targeting items from rapeseed and legumes to seafood, meat and dairy shows that policymakers have not been able to import obstacles, especially in the case. Facking all these efforts is a record for cereal production and determination to use this abundant period to create reserves.
China at its annual legislative meeting, which ends this week, has increased the goal of producing its year and budget for storage. At the same time, more technical measures such as reducing soybean meal in animal diets are also promoting, which is a sign of continuous anxiety about the vulnerability of livestock herds to foreign soy sources.
Sevilla was the largest US agricultural export to China worth nearly $ 5 billion a year, and in recent years the focus of severe efforts to change its dependence on other suppliers has been less hostile, such as Brazil. The seasonal production of global production will make South America a major share of China’s imports at least by summer, which will probably leave a 5 % tariff on American soybeans neither here nor in the coming months. Of course, the government wants to move the economy, and a large part of it is encouraging buyers to open their wallets.
successful stimulus of authorities can see a rise in food prices and change thinking about imports. The effect of severe weather on the product also affects calculations. But in the meantime, Beijing is using one of the most cost -effective and effective weapons in his business arsenal by targeting American agricultural goods. China’s retaliatory action against new US tariffs will accelerate Beijing’s move to alternative suppliers for agricultural goods, including Brazil, a change that began during the first trade war during the presidency of US President Donald Trump.
Beijing unveiled a set of interactions, including additional 5 % tariffs on all US goods, which were applied to agricultural trade at approximately $ 5 billion in early March. China’s economic conflicts and storage have been reduced for years for the US soybean. Its imports reached a 2 percent decline to $ 5 billion in US soybean soybean.
If China returns 5 % tariffs on American soybeans, it would seem unlikely that the US soybean price would be lower, as it is likely to reach its lowest level in August. The rise in soybean prices in the first half of the year depends only on climate disorders in Brazil’s production.
With the current threat of US tariffs by the Trump administration and its implementation, the competitiveness of imported raw materials is reduced. The result of these policies will continue to form the biological industry and US soybean demand. The development and efficiency of the soybean market shows a strong capacity for arbitrage (gaining profits from the price difference between two or more markets at a specified time) around tariffs, reorganization of business currents, and returning to long -term natural balance.
US proposed tariffs on Mexico, Canada and China
, however, the tariffs on Mexico, Canada and China can have widespread impact on other agricultural supply chains. For example, fertilizer prices are likely to rise because when American farmers lose export markets such as soybeans and add again to farmers with a shortage of liquidity.
Complications of imports of agricultural goods can damage industries such as chocolate makers and candies as well as fresh fruits and vegetable suppliers.
The United States continues to move away from China and trade more with ASEAN and Mexico. The country reduced its share of the trade of manufactured goods with China by 5 % between the ages of two and three. At the same time, the United States increased its share of imports from Mexico and Asseh by about 3.5 percent, respectively. As a result, Mexico became the biggest supplier of goods to the United States in year 2, the position that China has had since year 2.
in year 2, Mexico and ASEAN both continued to register trade achievements due to US trade orientation, with both economies earn faster than the average years of 1 and 2 years.
Mexico is the second largest soybean destination in the United States, accounting for about 2 % of the total annual soybean, though there are tariff threats. Meanwhile, China bought more than $ 5 billion of agricultural products from the United States in the year.
China continued to lose US imports in almost all sectors between the ages of 1 and 2 and had the highest reduction in electronics, machinery and textiles and clothing. In these sectors, US imports from China declined by between 5 % and 5 % during this period. This reflects a change in US resource supply patterns rather than a change in China’s export composition or values. In fact, China has increased its global exports to more than $ 5 billion since year 2. But China will continue to expand its trade with developing economies, especially Assene, Latin America and Russia; In particular, the nature of the warmer climate limits the farm storage opportunities, meaning that newly harvested sources usually find their way to export channels faster than North America.
encouragement to trade with developing countries
China is one of the major buyers of soybeans and corn, and the threat of increasing trade tensions between China and the United States during Trump is likely to encourage more trade with Caribbean. However, plant health concerns led China to block the purchase of soybeans from five Brazilian companies in mid -January, adding another complexity to the World Trade Story.
In the past two years, developing economies have surpassed advanced economies in deeper interaction with China and have taken over the major import and export of China. Together, China reduced its share of the total trade with the distant partners, including the European Union, Japan, South Korea and the United States, between the ages of 1 and 2 percent. Most of China’s change in developing economies was the result of growing trade relations with ASEAN, which surpassed the European Union in year 6 and became China’s largest business partner region.
Many parts that record the major commercial changes, such as electronics, machinery and textiles, are those that are changing the role of China as the upstream supplier of ASEAN inputs. Assey’s economies, in turn, produce the final goods for the world market and increasingly for the United States.
between years 1 and 2, the share of the Electronic export to the United States doubled and reached from 2 % to 2 %. One of the notable exceptions to this pattern is Indonesia. Its trade with China has grown by an average of 5 % annually between the ages of 1 and 2, which is due to the export of metals and minerals, especially Nickel Indonesia.
China’s trade with Latin America is also on the road with Chinese imports from the region and the growth of China’s export exports in manufacturing goods, consumer electronics and technology such as photovoltaic cells, lithium-ion batteries and electric cars (EVS). Much of this trade growth was due to trade with Brazil, which made up approximately 2 % of China’s total trade with Latin America in year 2, while in year 2 it was just over 2 %.
However, many Latin American economies have experienced accelerated trade with China. The value of trade between Brazil and China has grown by about 2 % annually between years 1 and 2. Peru and Colombia have experienced similar growth rates, and for some smaller economies, trade with China has been faster; For example, Ecuador and Costa Rica have recorded the annual trade rate of nearly 2 %. China has also deepened its trade relations with Russia.
