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.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.