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I continue to see posters claiming the tariffs on China are being paid by the US consumer & wanted to put that fallacy to bed. The data shows that is not the case at all and in fact prices on imports from China have dropped since the tariffs were enacted. You can argue farmers have been impacted (they have), or that prices on some specific items may have gone up (they have), but the gloom & doom predictions by the corporate, financial pundits that the US consumer would pay the tariffs in the form of higher prices, is plainly incorrect.
"Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in May following a 0.2-percent drop the previous month. Import prices from China have not recorded a monthly advance since the index rose 0.1 percent in May 2018. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month drop since a 1.6-percent decrease in February 2017."
I continue to see posters claiming the tariffs on China are being paid by the US consumer & wanted to put that fallacy to bed. The data shows that is not the case at all and in fact prices on imports from China have dropped since the tariffs were enacted. You can argue farmers have been impacted (they have), or that prices on some specific items may have gone up (they have), but the gloom & doom predictions by the corporate, financial pundits that the US consumer would pay the tariffs in the form of higher prices, is plainly incorrect.
"Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in May following a 0.2-percent drop the previous month. Import prices from China have not recorded a monthly advance since the index rose 0.1 percent in May 2018. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month drop since a 1.6-percent decrease in February 2017."
It will take a while as many contracts are still in force and very few tariffs have actually been paid. When I was in bi I often sold product for a year or two at the lower prices because I already had it in the warehouse....
If any of this becomes normalized the consumer will pay. But in many cases the companies just skirt the tariffs...there are plenty of ways to do so.
Repeat your conclusion once we have a year AFTER all the extra 40 Billion in tariffs are collected. Of course, if the economy continues to be weak goods will be cheaper even if companies have to lose money on them.....corporations don't just fold when they have to lose money.
But that money will ALSO be paid by us...in the forms of lower stock prices and lower dividends and fewer jobs on this end of the equation (imported stuff creates a lot of jobs as it works through the economy).
I continue to see posters claiming the tariffs on China are being paid by the US consumer & wanted to put that fallacy to bed. The data shows that is not the case at all and in fact prices on imports from China have dropped since the tariffs were enacted. You can argue farmers have been impacted (they have), or that prices on some specific items may have gone up (they have), but the gloom & doom predictions by the corporate, financial pundits that the US consumer would pay the tariffs in the form of higher prices, is plainly incorrect.
"Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in May following a 0.2-percent drop the previous month. Import prices from China have not recorded a monthly advance since the index rose 0.1 percent in May 2018. Prices for imports from China declined 1.4 percent over the past year, the largest 12-month drop since a 1.6-percent decrease in February 2017."
The price index tells us that China charged American importers less for goods???
But since China isn't the party paying the tariffs, the American importers are the ones paying the tariffs, then this isn't really telling us much, is it? Those importers are paying the tariffs, and they are either eating those costs, or passing them on to consumers. If they are eating them, they will only do so for a short while. And then they will pass them on to consumers. The previous rounds of tariffs' impact on consumers were muted, because the tariffs were focused on items that went to manufacturers and other suppliers or larger-ticket items like major appliances, the proposed upcoming round of tariffs are on items that consumers purchase directly (toys, smartphones, etc), and consumers will pay more.
It will take a while as many contracts are still in force and very few tariffs have actually been paid. When I was in bi I often sold product for a year or two at the lower prices because I already had it in the warehouse....
If any of this becomes normalized the consumer will pay. But in many cases the companies just skirt the tariffs...there are plenty of ways to do so.
Repeat your conclusion once we have a year AFTER all the extra 40 Billion in tariffs are collected. Of course, if the economy continues to be weak goods will be cheaper even if companies have to lose money on them.....corporations don't just fold when they have to lose money.
But that money will ALSO be paid by us...in the forms of lower stock prices and lower dividends and fewer jobs on this end of the equation (imported stuff creates a lot of jobs as it works through the economy).
The price index tells us that China charged American importers less for goods???
But since China isn't the party paying the tariffs, the American importers are the ones paying the tariffs, then this isn't really telling us much, is it? Those importers are paying the tariffs, and they are either eating those costs, or passing them on to consumers. If they are eating them, they will only do so for a short while. And then they will pass them on to consumers. The previous rounds of tariffs' impact on consumers were muted, because the tariffs were focused on items that went to manufacturers and other suppliers or larger-ticket items like major appliances, the proposed upcoming round of tariffs are on items that consumers purchase directly (toys, smartphones, etc), and consumers will pay more.
No. No they're not. The price of Chinese imports was lower after a year of tariffs. The American importers are NOT paying the tariffs, and they are not eating the loss, nor passing the cost on to consumers.
Hardly anyone is going to notice. As long as people have internet and their crappy $10 Starbucks coffee, life is good.
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