2 ms·
Taxes on transactions, such as tariffs, are almost never paid only by one side. The side with less flexibility is going to pay most of it, adjusting prices as n
by burfog 7y ago
Taxes on transactions, such as tariffs, are almost never paid only by one side. The side with less flexibility is going to pay most of it, adjusting prices as needed to make this so.
China has less flexibility. Idled factories are a huge problem, and there is no other buyer as large as the US. It is relatively easier for the US to buy elsewhere, both abroad and domestic.
About 83% of the tariff burden is getting paid by China. (analysis by European financial firm)
Even the part we do pay isn't all bad. It reduces the need for other taxes. It supports American workers, reducing income inequality.
- DuskStar 7y agoSeriously, 83%? That's insane! Seems things are going far better in this little trade war than I was expecting. If the 17% paid by US consumers displaces other taxes, that's a huge net gain.