The EU has calculated who will lose more from the US-China trade war

The European Central Bank simulates potential losses and benefits for the US and China as a result of their potential trade confrontation, pointing out that Americans are in a losing position

Reuters reports.

In a study, analysts said that the US's net export position would be substantially worse.

"A study by the European Central Bank has shown that the United States will suffer more losses if trade wars begin with other states, while the PRC will feel good after the response to it," the report said.

According to analysts, China instead will benefit by exporting more to third countries where US goods will be taxed, although this gain will be temporary.

The results of the analysis indicate that US export opportunities will deteriorate substantially. Under such a situation, US companies will invest less and employ fewer employees, which will exacerbate the negative impact.

At the same time, the report states that the ECB model is theoretical and does not repeat the actual terms of trade.

-Recall that in March, the Trump administration introduced 25% duty on steel and 10% aluminum on China, Russia and Japan, but temporarily postponed the introduction of additional duties for the EU, Canada, Mexico, Brazil, Australia and Argentina. In the US, they said that it was the European side who asked to postpone the introduction of duties to produce and submit their proposals.

-From June 1, the United States imposed heavy import duties on steel and aluminum from Canada, Mexico and the European Union.

-All on the topic USAChina

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