The trade spat between the US-China could have knock-on effects of about one per cent of global economic activity, according to Bloomberg Economics.
Beyond the direct China and US exposure, other countries, especially across the Asian manufacturing supply chain, have a stake in the trade flows. This is particularly the case for manufacturers of computers, electronics and electrical equipment.
In addition, among economists, these sectors are viewed as being most at risk from tariff hikes as not only will they have to pay more money, but they also have less experience in the dark arts of tariff avoidance used in other industries.