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