Tariff US consumers paid for the tariffs

There is a study in America that after Trump imposed the tariffs on China imports, the prices charges by the exporters remain unchanged, so the US consumers have to pay the higher prices, i.e. due to the tariffs.

The US manufacturers raised their prices to match the higher prices from the imports (which include the tariffs).

The study concluded that he US consumers paid for the tariffs.

With higher prices, the US manufacturers should be able to increase the production and employ more workers. This will take a year or two to achieve the outcome of creating more jobs in America.

Some of the China manufacturers (which could be China or foreign owned) will shift their manufacturing to other countries to escape the tariff. However, this will be temporary, as America will later impose the tariffs on these other countries.

We will probably see the return of tariffs and the push back of globalisation.

Tan Kin Lian

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