"Bilateral tariffs alter global competitiveness to the advantage of firms operating in countries not directly affected by them". It predicted that the European Union would be the biggest victor, taking home some $70 billion in additional trade thanks to the trade war.
President Donald Trump Wednesday justified imposing tariffs on the Chinese imports, saying the United States is receiving billions of dollars a month from a country that never gave it a dime.
Talks held last week in Washington among negotiators for the two countries were very productive, according to the treasury secretary.
Trump has threatened to increase existing tariffs and enact a third wave of penalties on Chinese goods imported to the USA if the two sides can't broker a permanent truce in a trade war that has spooked markets.
Since then, the two countries have exchanged several rounds of trade tariffs. "The effect of U.S".
A further tariff hike in the U.S.
The report also cautions that the effects "are consistent across different sectors" including machinery, furniture, chemicals and precision instruments, noting that bilateral tariffs "would do little to help protect domestic firms in their respective markets".
Trump's negotiators want Beijing to more strenuously enforce American intellectual property rights, stop cyber-hacking of trade secrets, curb industrial subsidies and end policies that coerce USA companies to turn over technology to Chinese competitors as a price of doing business in China's vast market.
The talks have centred on addressing USA demands for deep structural changes to China's economic and trade policies, including new protections for US intellectual property, ending forced technology transfers, reining in China's subsidies for state industries and increasing Chinese purchases of USA farm, energy and manufactured products.
"Countries that are expected to benefit the most from U.S".
"Under President Trump's leadership, common-sense policies have brought hope to the forgotten American worker", said Ross.
Lighthizer held a closed-door briefing with USA senators on Wednesday on the upcoming China talks and the proposed new trade agreement between United States, Mexico and Canada. Japan, Mexico and Canada would meanwhile each capture more than $20 billion in additional trade thanks to the tariff war, the study found.
But the effects of the trade war won't be negative for all regions. Imposing tariffs make US-made products cheaper than imported ones, and encourage consumers to buy American.
It added that Asian countries are likely to suffer the greatest impact.
A continuing tariff battle may do further harm to "the still fragile global economy" by disrupting global supply chains and causing turmoil in commodity prices and financial markets, the United Nations said. This is especially worrying if trade tensions spiral into currency wars, which would threaten the ability of people and companies around the world to pay off dollar-denominated debt, they said.