US China Trade War will Benefit Guatemala Economy

US China Trade War will Benefit Guatemala Economy. President Donald Trump took the trade war with China to the next level on Friday, increasing tariffs on $200 billion worth of Chinese goods to 25% from the previous 10% rate.

The tariffs cover a wide array of goods, from minerals used in manufacturing, to vegetable juices, to leather handbags.

Source: https://www.businessinsider.com/trump-china-trade-war-list-of-goods-tariffs-2018-9

US China Trade War

The following export product groups represent the highest dollar value in Guatemalan global shipments during 2017. Also shown is the percentage share each export category represents in terms of overall exports from Guatemala.

At the more granular four-digit Harmonized Tariff System (HTS) code level, the most valuable Guatemalan export products are bananas and plantains trailed by sugar, coffee, palm oil then nutmeg.

1. Fruits, nuts: US$1.2 billion (11% of total exports)
2. Coffee, tea, spices: $1.1 billion (10.2%)
3. Knit or crochet clothing, accessories: $1.1 billion (9.9%)
4. Sugar, sugar confectionery: $930.8 million (8.5%)
5. Animal/vegetable fats, oils, waxes: $570.4 million (5.2%)
6. Mineral fuels including oil: $381.2 million (3.5%)
7. Ores, slag, ash: $321.2 million (2.9%)
8. Beverages, spirits, vinegar: $317.8 million (2.9%)
9. Plastics, plastic articles: $316.4 million (2.9%)
10. Iron, steel: $305 million (2.8%)

By value, Guatemala’s top 10 exports accounted for 59.6% of the overall value of its global shipments.

Source: http://www.worldstopexports.com/guatemalas-top-10-exports/

US China Trade War will Benefit Guatemala Economy, products from China which will have a 25% increase in retail prices are listed below. Guatemala exports many of these types of products already to the US. One would assume Guatemala will see an increase in demands for these products.

Guatemala Fashion Revolution

Cotton: fibers; thread; yarn; denim; satin.

Flax: yarn; fabrics

Man-made textiles: polypropylene; rayon; nylon; polyester

Other textile products, rope, twine: hammocks; fish nets; carpets;

Fabrics: corduroy; gauze; terry towel; lace; badges; embroidery

Headgear: caps; hairnets; wool hats; head bands.

Essential oils, perfumes:perfume; lip or eye make up preparations; manicure or pedicure products; shampoo; hairspray; bath salts.

Sugars and candies: cane sugar; candies with no cocoa

Fruit and Nuts: Coconuts; cashews; almonds; hazelnuts; walnuts; chestnuts; pistachios; macadamia nuts; pecans; dates; figs; pineapples; guavas; oranges; mandarins; clementines; raisins; grapes; apples; pears; quinces; peaches; berries including strawberries, raspberries, cranberries, blueberries and others; bananas; a variety of dried fruits; peels of various fruits.