While the United States and China continue to implement tariff increases to improve their respective trade balances, other countries benefit by welcoming producers who are moving their factories from China.
As the U.S. administration increases tariffs on products from China, manufacturers note that the volume of their sales decreased because of competition with entrepreneurs whose production originates in countries that pay lower tariffs.
Thus, countries such as Vietnam and Mexico benefit because the industry has moved production plants to their territories, increasing exports and favoring their economies.
A typical case is that of Pedego electric bicycles, sold in the United States, which seven months ago were produced in China and are now assembled in Vietnam.
Don DiCostanzo, CEO and co-founder of California-based Pedego, explained that 80% of the bike parts used to be from China but “now, we’re probably 70% in Vietnam, and 30% in Taiwan,” according to VOA.
The situation with the GoPro a camera manufacturer is similar, but Mexico was the chosen country.
Also, statistics show that imports from Vietnam increased 33% in the first half of 2019 compared to the same period in 2018, while imports from China decreased 12%, according to the U.S. Census Bureau, quoted by VOA.
Simultaneously, countries such as Chile, Malaysia, Argentina, Singapore, South Korea, Brazil, and Canada will benefit from the trade disagreement between the most industrially powerful countries, the United States and China, according to USNews.
For his part, President Trump said America is winning the negotiations with China, and that the world economy is also doing well.
“The United States is doing phenomenally well. But one thing we have to do is economically take on China. Because China has been ripping us off for many years,” the president said.