Tariffs Being Paid ‘Entirely’ by U.S. Businesses, Consumers, Goldman Sachs Concludes
The prices of imported Chinese goods on which tariffs were imposed by the United States have risen significantly.
SEATTLE (Scrap Monster): The prices of imported Chinese goods on which tariffs were imposed by the United States have risen significantly, indicating that “the costs of US tariffs have fallen entirely on US businesses and households,” according to an analysis from Goldman Sachs.
The financial firm in May compared the consumer price index (CPI) for nine categories of goods that were subject to tariffs to the CPI for all other goods. The two measures closely track each other until the tariffs were imposed in early 2018, at which point the prices of targeted goods shoot up while the prices of other products slightly decrease.
Researchers noted that the price increases extend beyond imports because of domestic producers who have acted “opportunistically”: “The effects of the tariffs have spilled over noticeably to the prices charged by US producers competing with tariff-affected goods.”
President Donald Trump in May broadened the tariffs to include an additional $200 billion in Chinese imports. China retaliated by targeting $60 billion in U.S. goods for tariffs.
Courtesy: AIIS