in Addition, have lose China more than the USA, since the people’s Republic ran much stronger than suppliers in international chains is involved. “Indirect effects of trade war arise mainly because with import duties finished products in the United States or China to be processed as precursors of more.” Then you would be exported to third countries, where the duties are put in more expensive products. This meet also, and especially, Canada, and Mexico.

supply chains affect third countries

“third countries cannot afford, as a seemingly innocent customs of war, only from the page edge to watch,” said IfW expert Holger Görg. “Due to the strong interdependence in international supply chains are affected as well and need to take significant additional costs.” This commercial and consumer burden.

trade dispute missed the world economy put a damper

The customs dispute between the world’s two largest economic powers, provides for a cooling of the global economy. Commerzbank no longer expects that China’s economy is recovering significantly. Therefore, the economy is likely to grow in the Euro area in 2020, at just 0.7 (previous forecast: 1.1 percent) and in Germany only 0.8 (instead of 1.3) percent, said Commerzbank chief economist Jörg Krämer. The domestic economy was suffering already for well over a year of dwindling demand from China and the uncertainty that go from the trade war. “Germany remains in a grey area between a sharp growth slowdown and a recession.” For 2019, the Commerzbank expects a rise in gross domestic product by 0.4 percent. (SDA)