In May 2018, U.S President Trump launched a trade war against China. From 2018 to early 2020, imports from China have declined (see Figure 1), and imports from other countries, such as Mexico and Canada, have increased during the same period of time (see Figure 2). These trends, however, have been reversed since the outbreak of COVID-19 in the early 2020. Figure 1: Changes since 2018 in imports from China Biggest Declines Change since 2018 in imports from China -$20 billion -$15 -$10 -$5 $0 Telecom equipment Computer accessories Cellphones Furniture Apparel (cotton) Televisions Vehicle Partsttt Semiconductors Footwear Electric apparatus "Includes some miscellaneous household goods "Includes video equipment " Excludes tires and engines Source: U.S. Census BureauFigure 2: Top 5 countries exports to the U.S. Top Sources Mexico had been closing in on China's lead as the largest source of U.S. imports, but it was hit hard by the pandemic and its exports haven't rebounded as strongly as China's. Exports to the U.S., 12-month rolling sum Tariffs begin Covid-19 pandemic $600 billion 550 China 500 450 400 Mexico 350 Canada 300 250 200 150 Japan Germany 100 50 2016 20 Source: U.S. Census Bureau via Trade Data Monitor Based on this information, please answer the following questions: A. Explain why the imports of telecom equipment and computer accessories from China suffered the largest decline, while footwear and electric apparatus were only hit mildly. [Hint: think about the demand elasticity here] (2 marks). B. Explain how the outbreak of COVID-19 has impacted on the reversing of these trends (1.5 mark). [150 words Maximum]