New Study of China Tariff War

A discussion paper published this month by the economy, politics and society (EPoS) research center at the Universities of Bonn and Mannheim calculated that American importers bore 93 percent of U.S. tariffs, while Chinese importers shouldered just 68 percent of China’s tariffs. U.S. exporters paid the other 32 percent, the researchers concluded.

“We analysed how the tariff burdens were shared between importers and exporters and got some surprising results,” Lei Li, assistant professor of applied microeconomics at the University of Mannheim and one of the paper’s three authors, said in a statement. “Chinese importers paid about two-thirds of China’s tariffs. Yet, U.S. importers shouldered 93 percent of price increases due to U.S. tariffs. Such a near-complete ‘pass-through’ is uncommon and astonishing given the power of the United States to influence terms of trade.”

The paper estimated that Chinese tariffs cost Chinese importers $180 million and $510 million per month in 2018 and 2019, respectively, while U.S. tariffs cost U.S. importers $1.21 billion and $2.47 billion per month over the same period.

Not exactly the intended result.
Hopefully other economists will look at & review the study and give their input as the veracity of the study.

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The point wasn’t to impose greater expenses on China.

The point was to shift sources from China… that’s the cost to both sides, which was both desirable and acceptable to the US.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

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The tariffs mostly are politically motivated. The tariffs raise taxes not a bad idea.

Water is the first reason China is in decline. Lack of enough domestic resources is the next but that is redundant because water is a resource.

China’s leveraging has been to extreme even for a centrally controlled society or economy to carry on. In fact things like Nixon’s price controls backfire.

I’d like to believe the tariffs bought the US time to retool. The truth is if that was the aim we have not retooled yet. We will be but that begins really next year.

Sounds like a strong motivation for them to solve desalination.

We shelved studying our best lead in that graphene. I do not know if that is fully accurate but someone here two weeks ago said we were not fully pursuing it.

I think that is strategic.

China is second rate on the R&D front.