IMF confirms US tariffs hurt the US, contradicting Trump
Report concludes what most economists have argued for months: that China doesn’t pay US tariffs, American consumers and companies do
Washington — Companies in the US are paying almost all the costs from US President Donald Trump’s tariffs on Chinese imports, International Monetary Fund(IMF) researchers said in findings that dispute the president’s assertions that China is footing the bill. IMF researchers found “tariff revenue collected has been borne almost entirely by US importers”, according to the IMF’s blog post released Thursday. “Some of these tariffs have been passed on to US consumers, like those on washing machines, while others have been absorbed by importing firms through lower profit margins.” The report concludes what most private economists have argued for months: that China doesn’t pay US tariffs, American consumers and companies do. “Consumers in the US and China are unequivocally the losers from trade tensions,” the IMF paper said. It’s rare for the IMF to disagree with its largest shareholder, and the paper was released just as the rhetoric in Trump’s trade war with China reaches a boiling poin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.