The Edge - Volume One

Deliberating the duties TRADE TARIFFS AND THEIR IMPACT ON MAINLAND CHINA’S OFFICE MARKET

U.S.-China trade relations have continued to intensify. In September 2018, the U.S. announced that it would impose new tariffs on an additional $200 billion worth of Chinese imports, and that it was prepared to tax all Chinese imports. And, there are already $50 billion in Chinese imports subject to higher tariffs. China responded with its own levies on an additional $60 billion worth of U.S. products, on top of the $50 billion already implemented. As trade tensions continue to heat up, much is at stake.

Figure 1: U.S.-Mainland China trade (2017)

U.S. DEFICITS WITH CHINA ($ BILLION)

Computers & electronics

$167.3

Electrical equipment

$39.9

U.S. goods deficit with China in 2017: $375.2 billion

Misc. manufacturing

$38.6

Apparel

$29.3

Machinery

$25.7

Furniture

$23.4

Fabricated metal

$20.3

Leather

$19.8

Plastics & rubber

$15.6

Textiles

$11.6

U.S. SURPLUSES WITH CHINA ($ BILLION)

SHAUN BRODIE Head of Occupier Research Greater China shaun.fv.brodie@cushwake.com

Farm crops

$15.3

Transportation equipment

$10.5

Oil and gas

$6.9

REBECCA ROCKEY Economist

Waste and scrap

$5.5

Head of Americas Forecasting rebecca.rockey@cushwake.com

Minerals and ores

$1.5

Forestry products

$1.1

MARK UNSWORTH Head of EMEA Forecasting mark.unsworth@cushwake.com

Source: U.S. Census Bureau, Cushman & Wakefield Research

* All dollar amounts listed are in USD.

52 THE EDGE