As the trade war between the United States and China persist until this day with no apparent trade deal near the horizon, a new report has revealed that both countries have already lost tens of billions of dollars and are still losing more.
New data published by CNBC showed that compared to the first nine months of last year, trade data released Tuesday show U.S. imports from China have fallen a sharp $53 billion. U.S. exports to China are down just $14.5 billion.
Putting this into perspective, the United States is importing more products from China than it exports, which explains the massive gap in the percentages. This means that on relative terms, the U.S. has still lost more than China in terms of trade.
In the last nine months, the U.S. exports to China are down 15.5% as compared to the same period the previous year. Meanwhile, Chinese imports are down by a lesser degree of 13. 5%.
Furthermore, the striking impact can be felt not by President Donald Trump, who carelessly boasted about China losing more than the U.S. due to the trade war, but by individual industries.
The U.S. agricultural exports have fallen by $2 billion, and exports of minerals and ores to China have plunged 65% in 2019. For forestry products and livestock, exports are down by 39% and 35%, respectively.
The bigger problem for the United States, experts echoed, is when by the time that the tariffs have relaxed, and the trade war concludes, Chinese companies were already able to find alternative suppliers. This means that the impact of the trade war will most likely become permanent for some U.S. industries.
Back in June, more than 600 U.S. companies have sent a letter to President Donald Trump, urging his administration to find ways to resolve the brewing tension between Washington and Beijing over the lack of a mutual trade agreement.
The letter was sent by a group of 661 companies named Tariffs Hurt the Heartland, the national campaign against tariffs supported by more than 150 trade associations representing retail, tech, manufacturing, and agriculture, avoid additional tariffs and reach a resolution with China.