The USA-China Trade War And Its Impact On Shipping

1. The USA-China Trade War And Its Impact On Shipping As a result of the trade war, the USA and China trade relation is going through a very rough phase. The world’s two largest economies are adding tariffs after tariffs on each other. The impact is wide and can be seen in world economies. Most of the developing countries are facing a slow down in their GDP growth as a result of this infamous trade war. The USA and China are quite important to each other. Just before the trade war, in the year 2016, the service exports from the USA to China increased by 12% whereas it contrasted by 0.6% to the rest of the world. Due to China’s reputation as a manufacturing hub, it is quite significant for the USA, and on the other hand, the huge market of the USA is making it a paradise for China. Shipping from China to USA is not an easy task due to their distance. As most of the trade is carried out through sea route, it takes several days to reach the destination. The cost of transportation is also significantly higher, but that didn’t affect due to the large volume. But after the beginning of the trade war, the volume decreased drastically and now become a cause of concern for the shipping industry. Due to the high tariff rate, the shipping industry will be more vulnerable in the coming days. Most of the companies who are responsible for bulk shipping from china to USA are about to face a great loss and that forced to change the traditional techniques and to opt new measures to minimize the shipping cost. The shipping from China to USA needs a revolution to minimize the impact of the trade war and helps the products to be available at a reasonable price. China ASE Freight Jiechang Business Building, Songgang Street, Baoan District, Shenzhen,P.R.China, 511700 Tel: +86-755-36303322 info@asefreight.com https://www.chinaasefreight.com/