Gap Grows Between Pre-Tariff Trend And U.S.-China Trade

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Posted: Aug 09, 2019 8:24 AM
Gap Grows Between Pre-Tariff Trend And U.S.-China Trade

Source: AP Photo/Richard Drew

In June 2019, the gap between the pre-trade war trend and the trailing twelve month average of the value of goods exchanged between the U.S. and China expanded to $9.4 billion, a difference of 15.4% from the pre-trade war projection to the recorded level of direct trade between the two nations. 

Most of this growing gap may be attributed to the cumulative impact of China's effective boycott on U.S.-produced agricultural goods, which to date, has primarily been achieved through retaliatory tariffs on U.S.-grown crops, such as soybeans. On Monday, 5 August 2019 however, China's leaders confirmed they will fully suspend all new purchases of U.S. agricultural products, tightening their boycott of these goods.

Since the U.S.-China trade war began in March 2018, the cumulative total loss of direct trade between the two nations has grown to $52.8 billion. This figure now exceeds the trailing year average level of U.S.-China trade, which totaled $51.4 billion in June 2019.