U.S. tariffs on Chinese goods almost entirely borne by U.S. importers, says IMF study

[TaiShang]

U.S. tariffs on Chinese goods almost entirely borne by U.S. importers, says IMF study

(Xinhua) 14:12, May 24, 2019


NEW YORK, May 23 (Xinhua) -- U.S. tariff revenue collected from levies on Chinese goods "has been borne almost entirely by U.S. importers," a study by the International Monetary Fund (IMF) has found.

The study, released on Thursday, said previously imposed tariffs have reduced trade between the United States and China, but "the bilateral trade deficit remains broadly unchanged."

The study also said some of the additional tariffs have been passed on to U.S. consumers, while others have been absorbed by importing firms through lower profit margins.

"Consumers in the U.S. and China are unequivocally the losers from trade tensions," the study said.

Earlier this month, the United States increased additional tariffs on 200 billion U.S. dollars' worth of Chinese imports from 10 percent to 25 percent, and has threatened to raise tariffs on more Chinese imports.

In response, China has announced that it will raise additional tariffs on a range of U.S. imports from June 1, and "will fight to the end."

"A further increase in tariffs will likely be similarly passed through to consumers," the IMF study said.

"While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains, and jeopardize the projected recovery in global growth in 2019."

http://en.people.cn/n3/2019/0524/c90000-9581326.html

 

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[TaiShang]

China sympathizes with U.S. farmers but bears no blame: spokesperson

CGTN - 25-May-2019

China on Friday said it deeply sympathizes with U.S. farmers and ranchers for problems they had been encountering, but bears no blame for the problems.

Foreign Ministry Spokesperson Lu Kang made the remarks at a news briefing in response to media reports that U.S. Senator Jerry Moran recently said in his recommendations to the U.S. Agriculture Secretary Sonny Perdue that the net farm income had fallen by 50 percent since 2013 and many farmers and ranchers were on the verge of financial collapse.

Moran asked to resolve the ongoing trade dispute with China, saying another round of assistance may provide short term relief for farmers, but will not make up for lost export markets and long term implications of the trade disputes.

"For the problems the U.S. agricultural and livestock industry practitioners have been encountering, their Chinese counterparts deeply sympathize with that," Lu said.

China and the U.S. have developed good cooperation in a wide range of fields including agriculture for a long time, which has benefited the industries and consumers of both sides, Lu said.

He said the demands of the U.S. organizations of relevant industries, including agricultural and livestock, had shown their clear understanding that China was not responsible for the obstacles blocking the mutually beneficial cooperation between the two countries, as well as preventing China and the U.S. from resolving differences through friendly consultations and advancing common interests.

The Chinese government had to take measures to protect its legitimate rights and interests when they get violated, just the same as the other countries' governments, he added.

(Foreign Ministry Spokesperson Lu Kang at a news briefing. /Photo via the website of Ministry of Foreign Affairs)