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Kwon trade war

This article aims to examine the trade diversion effects of the US–China trade war on selected third-party economies from 2018 to 2019, during which tariff escalation between the United States and China was the most prominent. Using US import data of selected product groups from 2016 to 2020 from UN Comtrade database, this article demonstrates that among the top diverters of China’s trade in the 2018–2019 period, Vietnam was the most successful in replacing China’s share in the US import market in the selected product groups. With a brief explanation of the basis behind Vietnam’s unforeseen success in the US import market, this article concludes that tariff war is costly and leads to diversion from third-party economies, with little benefits to the domestic consumers and firms.

PHOTO BY: Dr. Ernest Gunasekara-Rockwell
VIRIN: 220731-F-YT915-088.PNG
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