The trade war between the two biggest economies has reshaped the supply chain. Manufacturing growth in China has slowed down whilst in the USA it has increased.
The growth in the US is by 6.2% and the country has seen a steady manufacturing increase in the last year by at least 5% or higher on a monthly basis. At the same time in China manufacturing has decreased.
Global VS Local – the new political divide
However, not everything is good for the USA as consumers and companies are now paying more for Chinese goods and materials. President Trump increased tariffs on multiple Chinese goods as the trade talks between the two counties didn’t reach a compromise.
China has also retaliated and imposed tariffs of $60bn worth of American goods. Meanwhile, some Chinese neighbours are benefiting by the dispute with Vietnam topping the list.
US-China trade war escalates
Overall, the US has imposed higher tariffs on $200bn worth of goods and has raised them with 15% from 10 to 25%. The Chinese government said it deeply regretted they couldn’t reach an agreement and that it will take countermeasures.