Study: American businesses and consumers bearing the financial brunt of tariffs on China - Entrepreneur Generations

Though President Trump promised that tariffs on Chinese goods would not hurt Americans, new data shows that Americans are bearing the brunt of the tariffs, Jeanna Smialek and Ana Swanson report for The New York Times. Mary Amiti, an economist at the Federal Reserve Bank of New York, wrote in the new National Bureau of Economic Research paper: "U.S. tariffs continue to be almost entirely born by U.S. firms and consumers." 

The authors studied customs data to track the effects of tariffs. "Examining the fallout of tariffs in data through October, the authors found that Americans had continued paying for the levies — which increased substantially over the course of the year," Smialek and Swanson report. "Their paper, which is an update on previous research, found that 'approximately 100 percent' of import taxes fell on American buyers." The trade war has hit farmers and the manufacturing industry particularly hard, though other factors have contributed to those sectors' difficulties.

"The United States and China have reached a trade truce and are expected to sign an initial deal this month, but tariffs on $360 billion worth of Chinese goods will remain in place. The levies, which are as high as 25 percent, have forced some multinational businesses to move their operations out of China, sending operations to countries like Vietnam and Mexico," Smialek and Swanson report.

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