June 13, 2021
Economy

U.S. companies bearing the brunt of Trump’s China tariffs, says Moody’s

A Chinese and U.S. flag at a booth during the first China International Import Expo in Shanghai, November 6, 2018.

Johannes Eisele | AFP | Getty Images

American businesses are bearing most of the cost burden from the elevated tariffs imposed at the height of the U.S.-China trade war, said Moody’s Investors Service.

The ratings agency said in a Monday report that U.S. importers absorbed more than 90% of additional costs resulting from the 20% U.S. tariff on Chinese goods.

That means U.S. importers pay around 18.5% more in price for a Chinese product subject to that 20% tariff rate, while Chinese exporters receive 1.5% less for the same product, according to the report.

If the tariffs remain in place, pressure on US retailers will likely rise, leading to a greater pass-through to consumer prices

Moody’s Investors Service

“A majority of the cost of tariffs have been passed on to US importers,”…

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