The trade war between the United States and China has caused major disruptions for global businesses - but it may also bring benefits for some. Japan and Canada will see exports increase by more than Dollars 20 billion each, it said. Chinese tariffs on USA soybeans have resulted in trade distortionary effects to the advantage of several exporting countries, in particular Brazil, which suddenly became the main supplier of soybeans to China. US-China Trade War "Most Stupid Thing Ever", Says Alibaba Chief Jack Ma.
The study also underlines that bilateral tariffs "do little to help domestic firms in their respective markets". And even if they end up benefiting exporters in other countries, they also risk setting off a damaging sequence of negative effects around the world.
The report indicated that the European Union stood to benefit the most, with companies in the bloc likely to capture around $50 billion of Chinese exports to the US and about $20 billion of USA exports to China.
Trump has vowed to increase tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent now if the two sides can not reach a deal by 12:01 a.m. (0501 GMT) on March 2.
"We are now working on a new trade deal with China".
The study also underlines the "common concern" that trade disputes have an unavoidable impact on the "still fragile" global economy, particularly on developing, commodity-rich countries that are dependent on exports. Mexico, Japan and Canada could all add more than $20 billion of new exports.
In his comments on trade, he said he is following through on his pledge to fight for fair and reciprocal trade by making sure other countries - especially China - are held accountable. "China tensions are those which are more competitive and have the economic capacity to replace US and Chinese firms", UNCTAD said.
A continuing tariff battle may do further harm to "the still fragile global economy" by disrupting global supply chains and causing turmoil in commodity prices and financial markets, the United Nations said.
"One major concern is the risk that trade tensions could spiral into currency wars, making dollar-denominated debt more hard to service", the report adds. The tariffs target numerous products tech and telecom companies rely on, like semiconductors and modems.
After Trump hosted Chinese Vice Premier Liu He at the White House last week, one administration official privately likened the direction of negotiations to the president's caving to Democrats in the shutdown battle over funding for a border wall.
Other countries would acquire an estimated 82 percent of the value of the Chinese exports and 85 percent of $85bn of United States exports hit by the tariffs.
But Brazilian farmers have struggled to capitalize on this development, according to the UN. They charge a lot of tariffs. Moreover, Brazilian firms operating in sectors using soybeans as inputs - such as livestock feed - are bound to lose competitiveness because of price rises stoked by Chinese demand for Brazilian soybeans.