Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » World
2-min read

As Consumer Prices Rise, UN Says US-China Trade War 'Hurting Both Countries'

The US-China trade war has since last year seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods.


Updated:November 5, 2019, 10:06 PM IST
facebookTwitter Pocket whatsapp
As Consumer Prices Rise, UN Says US-China Trade War 'Hurting Both Countries'
Representative image.

Geneva: The ongoing trade war between the United States and China is harming both economies, the UN said Tuesday, with a sharp drop in exports and higher prices for consumers.

In a fresh report, the UN Conference on Trade and Development (UNCTAD) examined the repercussions of bruising tariff hikes imposed by the world's two largest economies, and found that both were left considerably worse off.

That in turn risks taking a toll on the entire global economy, the agency cautioned.

"A lose-lose trade war is not only harming the main contenders, it also compromises the stability of the global economy and future growth," head of UNCTAD's international trade and commodities division Pamela Coke Hamilton said in a statement.

The US-China trade war has since last year seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods.

The UNCTAD analysis, which only looked at the impact of the US tariffs, found they had caused a 25-percent decline in US imports of sanctioned Chinese products in the first half of 2019 alone.

"The United States tariffs on China are economically hurting both countries," the report concluded.

US consumers paying most

UNCTAD economist Alessandro Nicita told reporters in Geneva that during the initial phase of the conflict, "most of the costs of the tariffs have been passed down to US consumers or firms."

But he said that Chinese exporters were also increasingly lowering the prices of goods subjected to tariffs in what appeared to be a bid to maintain their US market share.

While the report did not consider the impact of Chinese tariffs on US imports, it stressed that "the qualitative results are most likely to be analogous: higher prices for Chinese consumers and losses for United States exporters."

Not everyone is losing out however.

The report, which was based on an analysis of recently released trade statistics, found that of the $35 billion lost in Chinese exports to the US market in the first half of the year, about $21 billion had been diverted to others like Taiwan, Mexico and the European Union.

The remaining $14 billion, it said, was either lost of captured by US producers.

According to the report, Taiwan saw the most benefit, gaining $4.2 billion in additional exports to the US in the first half of the year, especially by selling more office machinery, which was the sector hardest-hit by the tariffs.

Mexico also saw a significant export-hike, raking in an additional $3.5 billion in exports to the US, especially in the agri-food, transport equipment and electrical machinery sectors.

And the European Union gained around $2.7 billion in additional exports to the US, mostly in the machineries sectors.

Vietnamese exports to the US meanwhile swelled by $2.6 billion, driven in particular by sales of communications equipment and furniture.

Nicita pointed out that a different set of countries were likely benefitting from the tariffs imposed on US goods, pointing for instance to increased Brazilian soybean exports to China.

He however warned that "even countries that are gaining in terms of exports may not be gaining in net terms."

This, he said, is because "the global economy maybe is going to shrink a lot more, especially if this trade war is going to escalate even further."

On Tuesday, reports in the Wall Street Journal and Financial Times said US officials were considering rolling back some of the tariffs President Donald Trump had imposed on China, to seal a "phase one" trade deal with Beijing.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results