The US trade war with China has already had an impact on South Africa, according to Paul Lawrence, managing director of Tigers. “With the impact of duties being imposed by the Trump administration on Chinese imports, Chinese manufacturers desperately pushed to get as much stock out to the US before the implementation,” he told FTW. “This resulted in reduced stock and delays on orders to Africa, which were then rescheduled until later in the year.” But, said Lawrence, the trade war could also open up opportunities for South African manufacturers and exporters. “This could be particularly relevant for the South African wine industry,” he said. And in terms of outlook, Lawrence said while he hoped the trade lane would remain positive, a lot depended on the ongoing trade war. “How this trade war impacts on Chinese manufacturing capacity will be crucial,” he said. “There could possibly be a negative impact on demand from China if the major market is reduced due to the tariffs being imposed.” Laura Crow, managing director of Tigers China, said there was no doubt that the US tariffs had created uncertainty in the marketplace affecting China’s trade around the world, but like Lawrence she said it was not all negative and opened up opportunity. While the jury remains out over the long-term impact of this trade war, most analysts agree that the effects to date have been minimal. The US levied tariffs on $250 billion of imported goods from China. The country retaliated with tariffs on $110 billion of US goods.
