NEW YORK – A study by the International Monetary Fund (IMF) found that US tariffs on Chinese goods are almost entirely borne by US importers.
The study, released on Thursday, said that the previously imposed tariffs reduced the trade relationship between the United States and China, but “the bilateral trade deficit remained basically unchanged.”
The study also said that some additional tariffs have been passed on to US consumers, while other tariffs have been absorbed by importers through lower profit margins.
The study said that “the consumers of the United States and China are clearly the losers of trade tensions.”
Earlier this month, the United States raised the additional tariff on Chinese imports worth $200 billion from 10% to 25% and threatened to increase tariffs on Chinese imports.
In response, China has announced that it will impose additional tariffs on a series of US imports from June 1 and “will fight to the end”.
According to a study by the International Monetary Fund, “a further increase in tariffs may also be passed on to consumers.”
“Although the current impact on global growth is relatively modest, recent upgrades may severely undermine business and financial market sentiment, disrupt global supply chains, and jeopardize the expected recovery of global growth in 2019.”
