A local trade organization says that a trade dispute between the United States and China could directly hurt South Korea’s electronic devices and textile industries.

The Korea International Trade Association (KITA) said in a report on Sunday that U.S. President Donald Trump has threatened to slap a 45 percent tariff on Chinese imports and if the United States pushes ahead with these trade sanctions, China will likely take steps in response.

The report said that such a trade dispute between the two nations would have a negative impact on South Korea’s exports through China. KITA projected significant damage to the industries of electronic devices, textile, clothing and leather, where the share of processing trade is significant in China.

According to the report, 65 percent of South Korean electronic device exports to China and 60 percent of South Korean textile and clothing exports to China are for re-export to the United States and other countries.

The report said that a China-U.S. trade dispute would lead to a decrease in China’s exports to the United States and thus China’s economic slowdown, ultimately reducing demand in China for South Korean exports.