Fed New York: Americans Pay for New China Tariffs
In the tariff dispute with China, a bill of the US government could not have worked out.
Thus, according to one study, costs for new US taxes on imported goods from the People’s Republic are still hanging with the Americans. As the Federal Reserve of New York in their study published on Monday shows, contrary to the expectation in Washington, the prices for products from China have not fallen to the same extent as new duties are levied: the taxes amount to up to 25 percent, the prices are from June 2018 to September 2019 but fell by two percent. The continued stability of import prices for Chinese goods meant that US companies and consumers would have to pay for the tariffs – in the form of lower profits or higher prices for customers.
However, according to the study, China is feeling the consequences of higher tariffs in other ways. The share of Chinese products in certain US imports has fallen, the Fed said. For machines, Europe and Japan would have gained market share, and electronics such as South Korea and Taiwan would have. The study left open, however, how much market share could conquer US corporations.