EU loses most from Sino-US deal

The EU is affected the most by the trade conflict between the US and China. This usually happens when the two world’s largest economies argue over trade matters. The recent trade deal signed by the representatives of China and the US can be considered as a time bomb for the EU. China is set to increase imports of American goods by $200 billion during a two-year period covering 2020 and 2021. This is a serious commitment even for China which  suggests that the country’s authorities will have to review the list of current supply channels. There are concerns that China is going to buy more from the US and less from the EU. This is primarily due to the fact that the EU is China’s second-biggest trading partner. Moreover, in some sectors the EU surpasses the United States in terms of the overall volume of Chinese imports. Morgan Stanley experts named industries that would suffer the most from the trade agreement. They include agriculture (11% of China's total imports), chemical products (25%), high-precision tools (19%), transportation equipment (50%), machinery and electrical equipment (11%). As a result, the US-China trade negotiations will have a serious impact on the EU. Meanwhile, both world’s largest economies will benefit from the deal at the expense of trade with the European Union.