Posted on 11/25/2019 10:52:02 PM PST by Berlin_Freeper
When the Trump administration imposed tariffs on Chinese imports last year, officials insisted China would pay the cost - implying Chinese firms would have to cut their prices to absorb import “taxes” of up to 25% when the goods hit U.S. shores.
Instead, the prices Chinese firms charge have barely budged, meaning U.S. companies and consumers are paying the tariff costs, estimated at around $40 billion annually, New York Fed Reserve Bank researchers found in a study released on Monday.
(Excerpt) Read more at reuters.com ...
Just because a few firms doesn’t move their prices doesn’t mean Americans are still buying from the entire Chinese industry.
Always buy American, if possible.
In this case, what the tariff did was make a 10-dollar item around 12-dollars (more or less). It didn’t stop the production being sold. The tariff tax revenue? Well, it went into the US pocket. Hopefully, some American company would say that they could make the same product for less. The other avenue is that some company in Brazil would wake up and realize that they could make the same product for 10-dollars, and seize the opportunity to edge out Chinese industry.
The Deep State attempting to sour voters on President Trump.
U.S. residents are doing better financially than they have in 20 years.
Meanwhile, Trump has China by the short hairs. They’re ready to crack. Corporations are finding more profitable conditions for production in other Asian countries.
Not only that, but China knows they have to give in to President Trump if they expect to buy our pigs. They’re probably just holding out to see the Rat’s can take him out.
Don’t believe it,
But it doesn’t matter.
Keep raising the tariffs until the jobs and industries come back to America and the trade deficit balances.
China, almost immediately, slashed their currency value when the tariffs were implemented, and individual companies threatened to find other sources if the tariffs were transferred to the buyer. While there are potentially some costs carried by the US consumer, it’s not what the NY Fed is suggesting. There is almost no impact on the US economy, while China is treading water. This is just another attempt by entrenched officials to do China’s bidding.
I’m an idiot. Here I am writing about the economy and I missed the bigger picture.
The New York Fed Reserve Bank researchers who wrote that report just did a “Favor” for China. Just like Joe Biden did a “Favor” for Burisma. And Obama did a $350 million “Favor” for Pearson Publishing.
They are propagandizing for the ChiComs and against Trump.
The Chinese are eating a significant portion of the costs.
And it wouldn’t matter anyway, foreign government intervention in the market place is as bad or worse than domestic government intervention and the tariffs counter the effect of Chinese trade warfare against us.
The article is mis-stating the finding of the study. If the prices do not rise then the Chinese are absorbing the cost. I read this, more honest, article earlier.
Carney: Fed Economists Finally Admit Tariffs May Not Squeeze U.S. Consumers
A new look by the New York Fed at tariffs walks back claims that the cost of tariffs are borne by U.S. households.
John Carney 25 Nov 2019, 11:50 AM PS
I don’t see how. TVs are cheaper and cheaper by the day. When plasma’s first came out, my folks got a 46” Sony. Paid around $3k or more for it. Still works like a champ. Now you can get a 60” LED for less than $1000. So, the cost of some cheap Chinese made stuff went up a little bit. I doubt many of us pay attention.
Not saying that all things Made In America will last a lifetime, but buy Chinese and you’ll be buying another one in the not too distant future. see Sheetrock, PVC, etc
What folks do pay attention to is how much the following costs: gasoline, milk, bread, OJ, meat, chicken, heating oil, propane, etc etc. The stuff that folks need to survive. Not cheap electronics, tools and clothes.
The research did find, however, that China is feeling the impact of higher tariffs.
China’s share of U.S. imports of machinery and electrical equipment has fallen by around 2 percentage points since 2017, and its share of U.S. electronics imports has fallen by 6 percentage points.
That market share “has gone largely to Europe and Japan for machinery and to Malaysia, South Korea, Taiwan, and Vietnam for electronics and electrical equipment,” the study found.
In effect, due to the tariffs, China is losing a slice of its anticipated export market to the US to competitors. This is to China's disadvantage, and especially so in that other evidence shows that China is reaching the natural limits of her export boom. Worse, wasted infrastructure spending, excessive debt, and lack of a reliable bankruptcy mechanism are hindering China's needed reorientation to internal consumption.
Interesting - so when trump raises tariffs, they left complains that it’s the working americans that actually have to pay them (which is true), but when the left screams for business to pay higher taxes (or ‘pay their fair share’, they somehow seem to forget that working americans pay those taxes too, as the higher prices are just passed along to us.
Reuters doing what it does best, selective reporting of im portant ‘facts’.
Funny...I’m very familiar with this as I sell products that were affected. The importers largely “absorbed” the first tariff. Then, for the next one they “shared” the cost. When it became apparent that more tariffs were coming, they made other plans.
Now, most have either moved production away from China...either back to the States where possible, or to other Asian countries. This was not accomplished without diffculty (delays in production); but it has been done & is permanent...a huge blow to China in the long run.
The end result of all of this is that bids completed “pre-tariff” (over a year ago) for jobs ordered today have increased by less than 10%. So this (at least in my industry) is complete B.S.
What do liberals think happens when they tax gasoline, or any other product? The customers pay. At least this levels the playing field so that Americans are more likely to buy American made products.
I just read yesterday where there has been little to no effect on consumer prices duebto tariffs. If Americans are paying the cost of the increased tariffs it is very few of them.
Looking at a 65” LED TV for under $600 incl shipping.
Sounds like a collusion report from New Yorkers for Blumberg!
So at least the Democrats are being consistent here. They’ve been the party of slavery since they were established in the 1820s.
Fake news.
I had to buy toilet parts recently. One kit was made in China, the other was made in the USA and had a flag logo. The American made kit was a bit more expensive, but I bought it. Now to get hubby to install it.
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