US media: More than 90% of tariffs imposed on Chinese products are paid by US companies and consumers
Chinanews.com, May 28, comprehensive report, the US “Reason” magazine recently published an article “China pays less than 8% of the tariff cost, and the rest will be borne by the United States”, as predicted by economic theory, U.S. taxpayers are the biggest losers in the tariff policy of former President Trump, and more than 90% of the tariff costs are paid by American companies and consumers.
p >On May 25th, local time, customers dine at a seafood restaurant in Chelsea Market, New York, USA.
According to reports, Trump and his trade advisers have always claimed that the Americans are not paying for the additional tariffs on products from China. But economic theory and actual conditions show that this is not the case.
U.S. Consumer News and Business Channel (CNBC) quoted the latest report from Moody’s Investor Services, which showed that the United States bears over 90% of the cost of imposing tariffs on Chinese goods, and only 7.6% of the increased cost was China absorbed. Among them, “most of the tariff costs have been transferred to U.S. importers.”
The agency warned, “If tariffs continue to exist, pressure on U.S. retailers will increase, and more will be passed on to consumer prices.”< /p>
According to data from the Peterson Institute for International Economics, before 2018, the average US tariff on imports from China was only 3.1%, but after Trump imposed additional tariffs on Chinese imports, this figure has already Rose to 19.3%.
The report mentioned that economists believe that Trump’s tariff policy on China has harmed the US economy. The current US President Biden has said that although he does not agree with Trump’s attitude towards China, he is not in a hurry to reverse the policies of his predecessor.
Reason magazine wrote that in this case, Biden chose to continue to fight a failed trade war, which is obviously wrong.