“Trump’s tariffs on imported goods are almost entirely paid by American consumers – BloombergA study by the Kiel Institute for the World Economy shows that 96% of the tariff burden from Trump’s tariffs falls on American
buyers. This leads to higher product prices for consumers.
”, — write: unn.ua
DetailsThus, according to experts, only about 4% of the customs burden falls on foreign companies, the remaining 96% is passed on to American buyers, who pay duties and then are forced to either cover them at their own expense or raise product prices.
Tariffs function not as a tax on foreign producers, but as a consumption tax on Americans.
It is also indicated that the adjustment occurs due to a reduction in trade volumes, and not concessions in prices. At the same time, when faced with a choice between maintaining margins while reducing sales or reducing margins to maintain volumes, most exporters prefer the former.
RecallLast week, Donald Trump announced that he was imposing 10% tariffs on NATO countries, including Great Britain, France, and Germany, due to their troops in Greenland. Tariffs will rise to 25% from June 1 and will remain in effect until an agreement on the purchase of Greenland.
In response, the European Union began preparing to suspend the ratification of a new trade agreement with the United States.
EU prepares response to Trump’s threats regarding Greenland: tariffs of 93 billion euros – FT19.01.26, 05:32 • 25609 views