(Trade) War Victims

The US and China have been at loggerheads since 3 years now, the Trade War has been damaging to many companies with Huwawei being the most recent one after US decided to ban Huwawei from operating in the United States, this means that Huwawei phones in the US will now come without Google apps and the American chip manufacturers including Intel Corp and Qualcomm Inc, Xilinx and Broadcom have terminated their deals with Huwaei for manufacturing various tech like wireless and 5G.

As an immediate consequence, tech company shares had to take the blow on Wall Street with Apple stocks falling by 3.13%.

Huwawie

Huwawie is the second largest smartphone maker and the US is its sea of profit, its ban from the US means Huwaei’s profits will be hurt. What’s interesting is that China has the opportunity to avenge Huwaei ban by banning Apple in China, an eye for an eye ! according to experts, apple will lose 29% profit if china decides to do so. Not only China sells Iphone ( by sales volume, third largest market ) they manufacture it as well, if China stops manufacturing Iphone, Apple might have to look for another country to produce its iphone at such low costs as China.

In trade wars, companies and industries pay the price. Automobile industries have been churning amongst the trade tensions, with China changing the tariff on US made automobiles from 15 to 40% as an answer to the US upping the tariffs. Its like two kids fighting with both of them giving equal blows to each other.

Agriculture too is a majorly affected area in this war of tariffs- china is the largest importer of US soybeans. With the high tariff, soybean sales are drowning, stockpiles are increasing

Third parties are looking ahead on making money from this trade tension. The European Union is likely to take more than an estimated 70 billion of the US China bilateral trade. Japan, Mexico and Canada enjoy the show as well.

India could benefit from this trade war if the investment gets diverted to India. It sounds easy but its more complicated because India is just one of those countries where the US would like to invest, with other developing nations being Mexico, Thailand, Vietnam, Malaysia and Indonesia.