US-China Trade War Benefits Mexico, Vietnam - Forex News by FX Leaders
US-China trade war effect

US-China Trade War Benefits Mexico, Vietnam

Posted Monday, October 7, 2019 by
Arslan Butt • 1 min read

According to data released by the US Census Bureau, the US imported 12.5% less goods from China in the first eight months of 2019 on account of the intensifying trade war between the two countries. Although China managed to hold on to its top spot in trade with the US, imports of Mexico have registered a sharp increase, causing a reduction in its lead.

Mexico is the US’s second-largest supplier, and imports from Mexico grew by 5.5% till August this year to total $12.4 billion. Meanwhile, imports from China declined by $43.25 billion during this period when compared with the same duration in the previous year.

In addition to Mexico, the ongoing US-China trade war has also benefited Vietnam with its exports to the US soaring 34% to total $10.9 billion from January till August 2019. Vietnam has gained five places to become the seventh most important trading partner to the US. This is as a result of several Chinese companies relocating their manufacturing units to Vietnam to bypass the recent tariff hikes imposed by the US.

The overall goods and services trade deficit also climbed $0.9 billion higher in August from $54.0 billion in July. The trade deficit touched 7.1% till August 2019, the same as during the corresponding period in the previous year.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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