United States vs. China trade war and affected countries
The United States and China are fighting. Both countries experienced a trade war. This began when President Donald Trump set a tax on every Chinese product that entered the United States. In response to this policy, China did the same to the United States.
The trade war is now getting hotter after Trump insists that he will add to the list of products from the Bamboo Curtain Country that have hit import duties to more than USD 500 billion.
Apparently, the US and China disputes will not end in the defeat of one of them, but also affect other countries whose economies are most integrated into global value chains and rely on exports. When global trade is threatened, their economy will be very vulnerable.
Reporting from Business Insider, here are 10 countries that are most threatened by trade war based on the percentage of their exports to global supply chains.
The contribution of exports to the Irish economy reached 59.2 percent. This country is home to Google’s headquarters in Europe located in Dublin. Facebook also chose the city as its international headquarters.
The country known for Guinness beer relies on high-tech businesses and financial services and has a high ranking in foreign investment. It also causes it to be in a fragile position when the global economy is volatile.
Export contribution to Iceland’s economy reached 59.3 percent. Small countries are generally sensitive to market volatility.
Iceland’s industries include tourism, fish processing and aluminum processing. Most of its exports are sent to the European Union, Japan and the United States.
Malaysia’s neighbor country must be in eighth position because the contribution of exports to the Malaysian economy reaches 60.4 percent.
In June, Mahathir also acknowledged the impact of the US and Chinese trade wars on the world economy. China is Malaysia’s biggest trading partner. It is inevitable that the country’s economy is vulnerable to vulnerability due to a trade war.
The contribution of exports to Singapore’s economy reached 61.6 percent, and has an open economy. Recorded, the trade agreement between China and Singapore reached more than USD 100 billion.
The country of K-Pop is well-known as a strategic US partner in terms of economic, geopolitical and business, and has an important role in the denuclearization of North Korea.
Having an export percentage of 62.1 percent, South Korea’s top trading partners are Singapore, China and the US. Seen, two of them are involved in the Trade War, and one is threatened.
The country’s export percentage is 64.7 percent. The country’s trade partners are European Union countries. Just like Ireland, this country is very connected with high-tech engineering, making it so connected at the global level.
The export contribution to the country’s economy reached 65.1 percent. Hungary is very dependent on exports and makes it dependent on foreign trade. Key industries in Hungary are agriculture, automotive, IT, electronics and chemistry.
Just like Hungary, Slovakia depends on increasing exports. The country which is famous for the Tartra Mountains has an export percentage of 67.3 percent, and the Trade War can have a big impact.
Previously, on this list there were already two Asian Little Dragons which were said to be prone to being affected by the Trade War, namely Singapore and South Korea. Taiwan becomes a Small Dragon and Asian countries which are predicted to be most severely affected by the Trade War.
Taiwan is one of the most integrated economies at the global level with a percentage of exports of 67.6 percent. The country’s economy is also the main national pillar. However, Taiwan is famous for being very vulnerable when facing the global economic downturn.
This small kingdom surrounded by Belgium, France and Germany has the second highest GDP per capita in the world after Qatar.
Its main industries include banking, information services and steel. Luxembourg is very dependent on trade, and makes it exposed to the risks of the China and US disputes.
The trade war between the two major countries in the world will indeed have a wide impact. Especially countries that have a good partnership with the country in war.