Who’s paying the tariffs on Chinese goods? A new report says it isn’t the Chinese
Share Now on:
A new report from the Federal Reserve Bank of New York finds that the cost of tariffs on Chinese imports is being borne primarily by buyers in the U.S., not Chinese sellers.
Federal Reserve economists analyzed import price data and found that Chinese exporters have not appreciably lowered their prices to absorb the cost of tariffs, which are now 25% on approximately $250 billion of imports from China.
Instead, Chinese companies have sacrificed market share to competitors in Asia and Europe that aren’t subject to tariffs.
Those tariffs, which the New York Fed report calls “a form of taxation,” are being paid by U.S. businesses (manufacturers, wholesalers and retailers) and consumers through higher prices.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.