US And China Are Not The Biggest Victims Of Their Own Trade War?
The US tariffs for Chinese imports worth $34 billion come into force on July 6. China is ready to introduce tariffs immediately in response to the same amount. Investors fear that a full-blown trade war between the world's two biggest economies could wreak on the global economy.
The World Trade Organization said in a report on trade restrictions among G20 countries, that trade barriers erected by large economies may jeopardize the recovery of the world economy and their consequences are already beginning to manifest itself.
Such countries like Taiwan, Hungary, the Czech Republic, South Korea, and Singapore could be equally, if not more vulnerable, to the risk of a trade spat than the two currently front and center. Taiwan, for instance, is a hub for the technology and semiconductor industry and is home to large electronic contract manufacturers such as Foxconn, which manufactures Apple's iPhone, among several other major devices. Electronic integrated circuits accounted for 40% of Taiwan's total exports.
Hungary, whose biggest trading partner outside the EU is the United States, enjoys large investment inflows thanks to a large manufacturing base, particularly in the auto sector. Cars and motor vehicle parts were Hungary's two biggest exports in 2016, accounting for 15% of the country's total.