International Monetary Fund (IMF) reported on April 3, the worsening trade tension between China and the U.S. might cause job losses as the manufacturing would drive away from both economic giants moving the capacity towards Mexico, Canada, and East Asia. Although, it would not change the trade balance between the two countries.
The tension has gripped the global financial market since mid-2018. The applied tariffs of 25 percent on $50 billion worth of Chinese goods and levies of 10 percent on another $200 billion by the U.S, is retaliated by China by applying duties on key agricultural crops from the U.S. Chinese manufacturing sector and U.S. agriculture would receive a hard blow if the tension kept escalating.
In its April World Economic Outlook, IMF forecast large sectors in the U.S. and China lose a significant number of jobs. This means losses of 1 percent of the agriculture and transportation workforce in the U.S. and 5 percent of manufacturing workforce in China.
