What regions of the United States can lose the most money and jobs because of the trade war with China?



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After a truce declared at the last G20 meeting in December in Buenos Aires, Argentina, which resulted in a series of negotiations between the United States and China to avoid a "trade war" remained in the shadow throughout the year 2018, the first two economies in the world seem to be back in conflict and this time, as if calm tensions were escaping, the prospect is even worse.

This Monday, Beijing announced customs duties of about $ 60 billion on goods of US origin. A total of 5,140 products will be available from June 1st. taxed at rates between 5% and 25%, and the measure was announced in response to Washington's decision to raise tariffs on 200,000 million Chinese products.

The numbers are exorbitant, typical of the two largest economies on the planet, and the rest of the world is starting to prepare for a possible slowdown in global growth caused by the conflict and the consolidation of an era of instability where the dollar and US Treasury bonds reigna situation that is already generating turbulence in emerging economies.

United States exported by 2018, China would have imported some $ 540 billion worth of Asian giant's products for about $ 120 billion in China, according to data from the United States Census Bureau (United States Census Bureau). This $ 420-billion deficit is constantly invoked by US President Donald Trump to explain recent disagreements.

Trump seems to be trying to negotiate a trade agreement with China similar to the one already concluded with Canada and Mexico, although his country is still far from reaching it and the "tariff war" is on the agenda.

But the truth is that this conflict, that eye for special tariff with which Washington hopes to reverse a situation that, from his point of view, seems unfair, It has also generated a series of threats to the US economy.

Exports for $ 120,000 million they give work to just over 1,100,000 people in the country, according to the 2019 report of the US-China Business Council (UCBC), an organization created in 1973 by 200 US companies with interests in China.

The date is important: it's about a year after Richard Nixon's visit to China, the first president of the United States to the People's Republic, born in 1949 and which ushered in an era of rapprochement in the commercial, cultural and political relations that constituted the silent axis, in opposition to the Soviet Union, the international system of recent years. decades

Today, this project seems to be in crisis, especially since the turning point of US foreign policy towards Asia launched by former President Barack Obama and China's badertive exit to expand its economic, but also cultural and military influence, these past years and around the world.

Among the 50 states of the country, It is in California that are concentrated the largest number of jobs threatened by the trade war: 152,830. But there are also a lot of people working in the export business related to China in Texas (92,310), Washington (76,460), New York (64,760) and Illinois (57,570), to name only the first five.

Which industries export the most to China specifically in these five states? In the case of California, these are manufacturers of industrial machinery, vehicles, measuring and navigational instruments, semiconductors and components.

In Texas, however, the main export product is el oil and gas, followed by chemicals and synthetic fibers. In Washington, the historic headquarters of the aerospace company Boeing, aircraft and their parts are the main product exported to China (and, in total value, one of the main categories of products exported by the country), followed by instrumental products and wood products

New York exports mainly to China metallurgical products, engines and turbines, while in Illinois, at the center of the American corn belt, They dominate cereals and vegetable oils, followed by vehicle parts and measuring instruments.

Among them, Washington and Illinois were among the most affected by the trade war with China, which hit the aeronautical and agricultural products with great strength. Washington Exports they fell in 2018 with $ 1,714 million and those in Illinois with $ 1,849 million.

California, Texas and Washington increased their exports by $ 57,298 and $ 232 million, respectively, and the same year although at a much lower rate than known until the beginning of the conflict.

In all, 34 US states reported exporting less in 2018 than in the previous year, according to the UCBC report. And four reported export growth of less than 10%.

The The trade deficit with China has been one of the biggest concerns of the Trump administration, both during the campaign that led the Republican to power in 2016 and during his first years in office. The same goes for job creation, especially in the industrial sectors which, according to the White House, have lost their vigor because of Chinese imports.

A "commercial war" unleashed and without truce, however This seems to put both concerns in conflict.

This is the 2019 report of the US-China Business Council (UCBC):

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