ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Since the trade war with China began, many Chinese seafood importers have started buying live lobster from Canadian companies. Businesses that export Maine’s lobsters abroad received the distressing news that China had slapped the United States with a 25% tariff on US lobster exports.

Detailed explanation-2: -Chip makers and electronics manufacturers that depend on China for sales, like NVIDIA Corp. (NVDA), Micron Technology (MU) and Intel Corp. (INTC), are seen as especially vulnerable in a trade war scenario.

Detailed explanation-3: -U.S. consumers paid $8.3 billion in Section 301 tariffs for these specific imports. The United States imported $130.5 billion worth of intermediate goods from China subject to Section 301 tariffs in 2021 and U.S. consumers paid $26.2 billion in tariffs on these imports.

Detailed explanation-4: -Automobile exports were also affected by the retaliatory tariffs. Using county-level data, economist Michael Waugh found that a one percentage point increase in exposure to the Chinese retaliatory tariffs led to a one percentage point decrease in auto sales through 2018.

Detailed explanation-5: -One of the industries impacted the most by the trade war is the technology industry. Chipmakers such as NVIDIA (NVDA 2.47%), Micron Technology (MU 0.62%), and Intel (INTC 0.76%) are particularly vulnerable to the trade war tensions as they have high exposure in China.