Recently, the events and topics of the Sino US trade war have attracted the attention and heated discussion of many netizens. On May 9, 2019, the U.S. government announced that from May 10, 2019, the tariff rate on the $200 billion list goods imported from China will be increased from 10% to 25%. This measure of the United States has led to the escalation of Sino US trade frictions and damaged the interests of both sides. In order to safeguard the multilateral trading system and its legitimate rights and interests, China does not impose tariffs on some imported goods originating in the United States. So what impact does the Sino US trade war have on the United States? This article brings you a summary of the impact of the Sino US trade war on the United States. Let's have a look.
In accordance with the foreign trade law of the people's Republic of China, the regulations of the people's Republic of China on import and export tariffs and other laws and regulations as well as the basic principles of international law, with the approval of the CPC Central Committee and the State Council, the Tariff Commission of the State Council has decided to increase the tariff rate of some US goods in the US $60 billion list that have been subject to tariff increase since 0:00 on June 1, 2019, 25%, 20% or 10% tariff increases will be implemented respectively. The tariff of 5% will continue to be levied on the commodities for which the tariff of 5% was previously imposed.
'tariffs hurt the hinterland of the United States'
A statement on the president's sudden imposition of tariffs
Over the past 10 months, Americans have been paying for the full cost of the trade war, not China. What needs to be made clear is that tariffs are paid by Americans. A sudden increase in tariffs will only punish American farmers, businesses and consumers.
Taxing Americans as a negotiating strategy will only make things worse. Taxing Americans who buy furniture, tools, electronics and groceries will not help to reach an agreement. Hoping for a better deal in this way is just letting hard-working Americans pay for it.
If the president goes his own way, the result will be very bad. Recent estimates show that raising the tariff to 25% will reduce nearly 1 million U.S. jobs. The decision will also exacerbate financial market turmoil and increase the risk of retaliation for American farmers, whose income levels have fallen to their lowest levels in recent years.
Republicans and Democrats in Congress need to step up their response to this threat. A substantial increase in taxes that stifle employment for their own voters is unlikely to win the hearts of the people. In the coming days, legislators must take action to protect Americans from this threat.
Impact of raising tariffs to 25% on the United States
And the price Americans will pay:
Raising the tariff to 25% will reduce nearly 1 million U.S. jobs--
A report from the trade partnership shows that raising the tariff to 25%, together with the tariffs and retaliation already imposed, will reduce more than 934000 U.S. jobs, cost an ordinary family of four more than $767, and slow down GDP by 0.37%.
American consumers paid an extra $69 billion--
A study released by a group of economists shows that due to the tariffs imposed by the United States last year, including the additional tariffs on $250 billion of Chinese goods exported to the United States and the taxes on steel and aluminum, American consumers have increased their costs by $69 billion.
Reduced U.S. revenue by $1.4 billion a month--
A recent study by the Federal Reserve Bank of New York, Princeton University and Columbia University found that 'the trump administration's trade policies and tariffs reduced US revenue by $1.4 billion a month by the end of November.' The study found that over the past year, U.S. enterprises and consumers have seen a 'sharp rise' in commodity prices, and imported goods with tariffs imposed by the United States have been 'fully covered'.
All the costs of the trade war are transmitted to consumers--
A study by the Federal Reserve Bank of New York, Princeton University and Columbia University also found that 'U.S. tariffs are almost completely transmitted to U.S. domestic prices.' (in addition, according to a study released in March by economists from the Federal Reserve Bank of New York, Princeton University and Columbia University: 'we conclude that the current tariff revenue charged by the United States is not enough to make up for the loss of consumers' purchase of imported goods.')
Even Chairman Kevin Hassett and the CEA (Council of economic advisers) admit that consumers are paying the cost of a trade war--
The annual economic report submitted to the president pointed out that although the Treasury raised billions of dollars in 2018, the disadvantage is that 'these are paid by consumers, who bear higher prices and lower consumption'. The research of the National Bureau of Economic Research (NBER) found that American consumers bear the brunt of tariff growth. (source: Global Times)