Friday , November 27 2020

Goldman says China-China is not likely to reach the trade trade by March and that more tariffs are coming



President Donald Trump (L) and Chinese President Xi Jinping are walking together in the Mar-a-Lago estate in West Palm Beach, Florida, April 7, 2017.

Jim Watson AFP | Getty Images

President Donald Trump (L) and Chinese President Xi Jinping are walking together in the Mar-a-Lago estate in West Palm Beach, Florida, April 7, 2017.

Economists said Goldman Sachs said that it was more likely that US-China trade negotiators will not reach agreement in time to reach higher prices on March 1, and importers could fight to order their goods in January and February before the closing date

Goldman said that international trade data reflected the front load of goods before the final round of tariffs, and also the fact that soybean purchases had dropped dramatically.

October trade data was the first look at what happened after tariffs at $ 200 billion in Chinese products and $ 60 billion U.S. goods came. to power in September. Goldman said that imports and exports were taken forward before the $ 200 billion tariff round came into effect on September 24th, and both lost after the tariffs were implemented, just as they did after the first round.

Over the summer months, the US had also implemented 25 percent tariffs at $ 50 billion in Chinese imports, and China responded kindly.

The impact was the expansion of the trade deficit in the United States. "Reduced exports along the side increase the small imports pushing the trade deficit with China to be high-time in October," the economists wrote.

U.S. imports from China is around $ 5 billion lower on an annual basis and exports are around $ 15 billion lower, due to seasonal factors that relate to soybean exports to China. The economists said that there have been significant shifts in some major categories, which include the effect of soybeans. There are about 60 per cent of soya annual exports to China in the fourth quarter, just about 25 per cent in October.

"With the exception of soybean, exports to China are slightly lower on an adjustable basis," they said. As for imports, imports of electronic circuits and memory components increased before the second round of tariffs and fell sharply after they were implemented

If there is no agreement by March 1, tariffs are expected to rise to 25 per cent of 10 per cent at $ 200 billion in Chinese goods.


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