In a poll conducted by Reuters, around 80% of more than 60 economists responding said they expect the U.S.-China trade fight to either worsen or stay the same by the end of 2020. The two countries share $660 billion in trade between them in 2018, according to the U.S. Census Bureau, and here are four charts that show big ways that commerce is changing.
That month, the U.S. imposed 25% tariffs targeted at $34 billion worth of Chinese goods. In response, Beijing hit back with higher duties on $34 billion of American products. Tariffs have continued to climb since.
Slowing US-China trade
“China’s been much more successful at curtailing its imports from the U.S. than the U.S. has been in curtailing imports from China,” said Eric Fishwick, CLSA’s chief economist told CNBC’s “Street Signs.”
“Trade both ways, though, has slowed faster than for example China’s trade with Europe,” he added. “So, the trade wars are definitely having an impact.”
US trade deficit with China
The U.S. runs the largest trade deficit with China — a point that President Donald Trump has used to justify tariffs in the first place.
A large portion of America’s net imports — products that the U.S. buys from China more than it sells to China — are “high margin finished goods,” said Don Steinbrugge, founder of hedge fund consulting firm Agecroft Partners.
U.S. net exports to China are largely “low margin commodities,” such as crops, oil, gas and forestry products, he said.
US soybean exports to China
Soybeans are one of the main products the U.S. sells to China. And now they’re in the crossfire.
Farmers are among the largest supporters of Trump. And China, the world’s largest buyer of several agriculture products including soybeans, has used reduced purchases of some farm products in an attempt to punish American farmers and put pressure on the U.S. president.
In the middle of last year, China almost entirely stopped importing soybeans from the U.S. as demand plunged due to a shrinking pig herd from an outbreak of African swine fever. Soybeans are used as animal feed in China.