The escalation of the conflict between the U.S. and China is reflected in the economies of many countries, including Russia. Experts predict that the consequences of the trade war may have a negative impact on the cost of the country’s resources in the world market, and lead to serious problems.
Impact of trade war on the world economy
Changes in the global market and redistribution of players have a negative impact on demand for products and raw materials from Russia. This will lead to lower prices for major export resources from the country, such as oil, coal and various metals.
According to the head of the Ministry of Economy, the consequences of the US-China trade war will be felt in Russia. The demand in the world market will decrease not only for products, but also for raw materials. Decrease in supply is tangible for companies that supply resources to China. For 3 years, China has been the main market for Russian oil exports, in addition, it buys large volumes of gold, coal, copper and other valuable raw materials.
Complicated relations between the U.S. and China have resulted in lower demand from the latter. This situation has direct consequences for Russia, which has been supplying agricultural products, timber and other goods for a long time. As a result, the country’s position in the global market is declining, which is reflected in the exchange rate of the domestic currency. Within a short period of time, the dollar rate shows an increase to 65 rubles, while the exchange for the euro is asking 72.57 rubles.
According to experts, the situation will not change in the near future. The trade conflict between the two powers will only worsen, which leads to a decrease in the growth of economic indicators of Russia.
From June 1, China introduced duties on products from the U.S., the total amount of $60 billion. In addition, the tax increased to 25% by 2493 units, including liquefied natural gas. Such measures by the Chinese authorities were a response to the states’ actions. Earlier they increased customs duties on products from China from 10% to 25%. The tax increase occurred after the presidents of two countries did not reach a unanimous decision on trade agreements.
The increase in duties on certain goods has been continuing between the states since last year. The consequences of such manipulations can be felt in the economy of the parties to the conflict and in the world market as a whole. At present, there is a decline in demand for American products in China. Compared to the previous period, it fell by 30%.
The consequences of the trade war have been felt in a number of countries, including Russia, where exports are declining and the national currency is weakening.