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Imports from China are rising https://fred.stlouisfed.org/series/IMPCH https://fred.stlouisfed.org/series/IMPCH but the prices of those imports are falling.
by thanatropism 8y ago
Imports from China are rising
https://fred.stlouisfed.org/series/IMPCH https://fred.stlouisfed.org/series/IMPCH
but the prices of those imports are falling.
https://fred.stlouisfed.org/series/CHNTOT https://fred.stlouisfed.org/series/CHNTOT
This can mean two things: either the Chinese are cutting prices to cope with tariffs (a benefit to the US), or Americans are displacing expensive Chinese goods for cheaper Chinese goods -- which means the demand elasticity is high and most of the burden goes to the Chinese producer, as explained by the diagrams in your study.
- friedman23 8y agoImports from China are rising because importers expect prices to rise. If you want to know if tariffs are harming China you should look at FDI.
- pmart123 8y agoThis is what the Maersk CEO said recently. Everyone is importing more now in case prices and tariffs rise. He also mentioned that US exports to China has slowed presumably because the Chinese government force the hand of Chinese companies more easily.
- pcr0 8y agoThird thing: the Yuan is sliding, negating the impact of tariffs.
- ksec 8y agoYuan has already slided nearly 10% since May, and I think may slide another 10% within the next 12 months. Ultimately I am looking at 7.7 - 7.8 range.