US-China trade war is creating winners out of Brazil, Australia and… Mexico!

The US-China trade war continues to accelerate. America has put 25% tariffs on $250 billion worth of Chinese imports, and is slated to add an additional 10% tariff on the remaining $300 billion. China currently collects tariffs between 5% and 50% on about $113 billion of US imports.

Some worry about the long-term negative effects the trade war could have on the global economy, but in the short term, the bi-lateral tariff fight has brought benefits to many other countries.

Quartz analyzed the trade flows of product categories affected by the Chinese and US tariffs. The data show that the winner of the US-China trade war so far is neither the US or China. It’s third-party countries like Australia, Brazil, Mexico and Canada who have stepped in to the void and found new buyers in the US and China.

The US’s happy suppliers

Mexico, Taiwan, South Korea, Japan, and Canada all saw significant increases in exports to the US following the US taxes on Chinese goods.

China’s happy suppliers

Australia, Switzerland, Brazil, Hong Kong, and Canada saw their exports to mainland China increase.

Quartz analyzed the trade flows of product categories affected by the Chinese and US tariffs. The data show that the winner of the US-China trade war so far is neither the US or China. It’s third-party countries like Australia, Brazil, Mexico and Canada who have stepped in to the void and found new buyers in the US and China.

The US’s happy suppliers

Mexico, Taiwan, South Korea, Japan, and Canada all saw significant increases in exports to the US following the US taxes on Chinese goods.

Mexico

Mexico has replaced China as the US’s largest trading partner in the first half of 2019.

The US now buys more data processing and storage devices as well as electric wire and fiber optic cables from Mexico. Both of those categories would be under 25% tariffs if they were manufactured in China.

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