Why US-China trade war’s latest escalation could be good news for Brazil, Mexico and Vietnam
- With US tariff hikes on Chinese goods kicking in on Friday, other countries are watching with interest
- But their gains may not offset an overall negative impact on Asian economies
Brazil, Mexico and Vietnam are among the countries that could make marginal gains in areas such as manufacturing and agriculture should US-China tensions continue after they flared up again this week, analysts have said.
The trade war between Washington and Beijing has already caused shifts in global trade, and will continue to create winners and losers as businesses try to cope with increased uncertainty.
The United States officially raised tariffs on US$200 billion of Chinese goods from 10 to 25 per cent on Friday, in a new escalation of tensions even as China’s Vice-Premier Liu He visited Washington for talks.
Donald Trump had said last month that the two sides were “very close” to a deal that would end nearly a year of mutual tariff levies, but the introduction of new tariffs on Friday – as threatened by Trump last Sunday – may change the landscape.
Global trade networks have been rocked by the US-China tariff exchanges that began last July, but uncertainty for some has opened doors for others.