• Fri. Dec 3rd, 2021

U.S. corporations bearing the brunt of Trump’s China tariffs, says Moody’s

ByHanna

May 18, 2021

A Chinese language and U.S. flag at a sales space through the first China Worldwide Import Expo in Shanghai, November 6, 2018.

Johannes Eisele | AFP | Getty Photos

American companies are bearing a lot of the value burden from the elevated tariffs imposed on the peak of the U.S.-China commerce battle, stated Moody’s Traders Service.

The scores company stated in a Monday report that U.S. importers absorbed greater than 90% of further prices ensuing from the 20% U.S. tariff on Chinese language items.

Meaning U.S. importers pay round 18.5% extra in value for a Chinese language product topic to that 20% tariff price, whereas Chinese language exporters obtain 1.5% much less for a similar product, in response to the report.

If the tariffs stay in place, strain on US retailers will probably rise, resulting in a higher pass-through to shopper costs

Moody’s Traders Service

“A majority of the price of tariffs have been handed on to US importers,” Moody’s stated within the report.

“If the tariffs stay in place, strain on US retailers will probably rise, resulting in a higher pass-through to shopper costs,” the company added.

Greater commerce tariffs got here into drive throughout former U.S. President Donald Trump’s time period. Most of these tariffs have remained in place and have an effect on over half of all commerce flows between the U.S. and China, stated Moody’s.

U.S. tariffs on Chinese language items stood at a mean of 19.3% on a trade-weighted foundation in early 2021, whereas Chinese language tariffs on American merchandise had been about 20.7%, in response to knowledge compiled by suppose tank Peterson Institute for Worldwide Economics.

Earlier than the U.S.-China commerce battle in early 2018, U.S. tariffs on Chinese language items had been on common 3.1% whereas China’s tariffs on American items had been at 8%, the info confirmed.

https://www.cnbc.com/2021/05/18/us-companies-bearing-the-brunt-of-trumps-china-tariffs-says-moodys.html