With all the news now being about tariff having turned into an outright Trade War with China, and with the market’s drop on Friday resembling an even larger drop a week and a half earlier, it’s important to track the moves seen in the major markets about where the tariffs are really going to hurt on the receiving end of imports and on the exiting end of exports.
24/7 Wall St. has tracked multiple Dow and key company moves from Friday and versus 52-week highs but we have excluded technology because the moves were unilaterally down. It’s pretty simple – if a tech company makes chips and circuits and other parts inside of PCs, tablets, smart phones and other gadgets and equipment that falls within the Internet of Things theme, U.S. tech companies have exposure to China and its trading partners.
According to the Office of the U.S. Trade Representative (USTR), China was the United States’ 3rd largest goods export market in 2018 with a total of $120.3 billion in U.S. goods sent there. That was actually down by 7.4% versus 2017, but the USTR showed that it was up 72.6% from 2008 and up 527% from 2001 before China joined the World Trade Organization.
Where the proof that China has more to lose than the United States is on how much the U.S. imports in goods which come from China. The tally of $539.5 billion in imported goods from China in 2018 alone was 6.7% higher than in 2017. The U.S. imports from China were shown to be up by 59.7% from 2008 and up 427% from 2001 before China’s WTO accession. All in all, U.S. exports to China account for 7.2% of overall U.S. exports and U.S. imports from China account for 21.2% of total U.S. imports