Trade War Increases Exports From Other Countries
At this point, the trade war has spanned two years and has been a primary cause in global trade growth dropping to 1% during 2019. In 2018, global trade growth was 4% and in 2017 global trade growth was 6%.
The trade war is being identified as a major reason that global trade growth has sunk for the past two years. Both countries contribute a large amount to global trade, with each nation independently importing more than $2 trillion in goods each year.
In the case of China, the U.S. greatly reduced the number of agricultural products sold to China. Conversely, China greatly dropped the number of electronics and industrial supplies sold to the U.S.
However, as both countries find themselves no longer importing particular products from each other, they are looking to other countries to help fill the gap between supply and demand. For example, garment imports from Vietnam into the U.S. has increased. Additionally, the U.S. is now importing larger numbers of cellphones from Vietnam. Imports for cellphones from Vietnam increased by nearly $6 billion last year.
Additionally, China has begun to rely on Brazil for soybeans. Soybeans are typically used as animal feed. Soybean imports from Brazil into China rose by $2 billion in 2019.