Two of the biggest economic forces in the world, the United States and China are still negotiating on the terms regarding the active multi-billion tariffs imposed by the US on all products coming from China, while the US expect Beijing to honor their commitments.
Although the two forces have agreed to negotiate on closing the trade deal, the trading war might continue, which means that some industries in the US could be heavily affected by the active war while the truce is waiting to be established by President Trump and President Xi Jinping.
Automobiles, Tech and Telecommunications, and Agriculture the Most Affected by the Trade War
It appears that a battle between the Chinese smartphone manufacturer Huawei and the US-based Apple Inc has been going on for a while alongside the active US-China trade war, followed by the arrest of the CFO of Huawei in Canada under the charge of trying to violate the rules of sanctions between US and Iran.
Perhaps as a result, China is banning import and sales of multiple Apple’s products, which means that tech and telecommunication companies that have previously cooperated with China might see serious declines in sales.
Additionally, top three US agricultural products exported to China are fruit, grain and seeds, while China had also been the largest importer of soybeans grown in the US. Since China added tariffs on the US-imported soybeans, many farmers are unable to sell their product through export to China, that way affecting US profits coming from agriculture.
Moreover, the biggest tension is seen in the automobile industry in the US, as the Chinese government increased tariffs on automobiles coming from the United States, from the previous tariff of 15% to the latest 40%.
This rigorous and sanctioning change had seen US car sales dropping in China for the first time over a long period of time, impacting carmakers in the United States.
