A study conducted by the United Nations trade and development body UNCTAD has revealed that India gained roughly $755 million in additional exports to the U.S. in the first half of 2019, profiting from the U.S.-China tariff war. The trade diversion effects due to the trade war between the two economic powers stands at $21 billion for the first half of 2019, with countries like South Korea, Canada, and India being amongst the primary benefactors of the fallout.
To put these numbers in perspective, China lost $35 billion in exports this year in the U.S. market. Since $21 billion of the vacuum was filled by other countries, the remaining $14 billion was either lost or captured by local producers.
"The results of the study serve as a global warning. A lose-lose trade war is not only harming the main contenders, it also compromises the stability of the global economy and future growth," said Pamela Coke Hamilton, UNCTAD's director of international trade and commodities. "We hope a potential trade agreement between the U.S. and China can de-escalate trade tensions."
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In the first nine months of the year, U.S. exports to China are down 15.5% compared with the same period a year ago, a bigger drop than the 13.5% decrease for Chinese imports.
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Hammer down everyone!
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