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Americans, not Chinese, pay for additional tariffs: U.S. Fed study [Copy link] 中文

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Post time 2019-11-28 09:55:29 |Display all floors
WASHINGTON, Nov. 27 (Xinhua) -- Chinese companies have not been lowering prices in order to offset additional U.S. tariffs, and American firms and consumers are paying the added cost, a new study by Federal Reserve Bank of New York has shown.

In annualized terms, U.S. tariff revenues were roughly 40 U.S.-billion dollars higher in the third quarter this year compared with the second quarter of 2018, before the additional tariffs were levied on Chinese imports, according to the study released Monday.

The study found that import prices for Chinese goods "seem unaffected" by the additional tariffs, meaning that Chinese companies have not been lowering their prices to offset tariffs.

Prices on goods from China fell by only 2 percent in dollar terms between June 2018 and September 2019, the New York Fed study showed, noting that this drop is "a small fraction" of the amount required to offset the increase in tariff rates.

Moreover, prices on goods purchased from Mexico and the so-called newly industrialized economies, such as South Korea and Singapore, have fallen by roughly the same amount, suggesting that this small drop is the result of general market conditions rather than the increase in tariffs, the study said.

The continued stability of import prices for goods from China means U.S. firms and consumers have to pay for the tariff tax, the study concluded.

Who pays the tariff tax depends on how it is split between lower profit margins for wholesalers, retailers, and manufacturers and higher prices for consumers, the study said, adding that estimating this split is difficult.

The U.S. goods trade deficit narrowed to 66.5 billion dollars in October as imports plunged, data from the U.S. Census Bureau showed Tuesday.

Analysts said the large decline in imports last month might reflect the impact of new U.S. tariffs on imported products from China.

Robert Kaplan, president of the Federal Reserve Bank of Dallas, said in an interview with CNBC on Tuesday that he expected U.S. economic growth to "be weak" in the fourth quarter this year as businesses cut inventories "due to trade uncertainty."

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Post time 2019-12-4 21:55:08 |Display all floors

This must be told to Peter Navarro, so called Chief Economic Advisor of White House.
Navarro made a fool of himself by drawing up a matrix that he proclaimed will show how US lost and must correct so that China will not harm US.
On the issue of US companies being forced to release high technology to companies in China; not even new born infants would believe it because if it is so easy; then it will happen to US companies in other countries long in the past. Nothing particular now and in China!

This is where Peter Navarro has turned himself as man with a big red nose from the circus!



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Post time 2019-12-5 10:18:39 |Display all floors

Peter Navarro should know how to explain to US FEB.
He advocates and pushes it through as Chief Economic Advisor of White House.
His twisted and turned skewed concepts had no one understanding him, other than US President Donald Trump.
Good to have Trump in office for a second consecutive term to mess up the US economy further and drag it into its own retardating phase with non positive growth.




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