"U.S. companies are bearing the brunt of Trump\u2019s China tariffs, says Moody\u2019s"

" \n American businesses are bearing most of the cost burden from the elevated tariffs imposed at the height of the U.S.-China trade war, said Moody\u2019s Investors Service. \n \n\n \n The ratings agency said in a Monday report that U.S. importers absorbed more than 90% of additional costs resulting from the 20% U.S. tariff on Chinese goods. \n \n\n \n That means U.S. importers pay around 18.5% more in price for a Chinese product subject to that 20% tariff rate, while Chinese exporters receive 1.5% less for the same product, according to the report.If the tariffs remain in place, pressure on US retailers will likely rise, leading to a greater pass-through to consumer pricesMoody\u2019s Investors Service \n \n\n \n \u201cA majority of the cost of tariffs have been passed on to US importers,\u201d Moody\u2019s said in the report. \n \n\n \n \u201cIf the tariffs remain in place, pressure on US retailers will likely rise, leading to a greater pass-through to consumer prices,\u201d the agency added. \n \n\n \n Higher trade tariffs came into force during former U.S. President Donald Trump\u2019s term. Most of those tariffs have remained in place and affect over half of all trade flows between the U.S. and China, said Moody\u2019s. \n \n\n \n U.S. tariffs on Chinese goods stood at an average of 19.3% on a trade-weighted basis in early 2021, while Chinese tariffs on American products were about 20.7%, according to data compiled by think tank Peterson Institute for International Economics . \n \n\n \n Before the U.S.-China trade war in early 2018, U.S. tariffs on Chinese goods were on average 3.1% while China\u2019s tariffs on American goods were at 8%, the data showed. \n \n\n \n U.S. importers are not the only one bearing the brunt of the elevated tariffs. \n \n\n \n Moody\u2019s said in the report that U.S. exporters also absorbed most of the costs from tariffs imposed by China. That\u2019s partly because the U.S. exports targeted by those retaliatory tariffs are products that may be sourced from other places, such as agricultural goods. \n \n\n \n Economists and businesses had argued that Trump\u2019s tariffs on China harm the U.S. economy , while failing to force China to reverse its unfair trade practices. \n \n\n \n President Joe Biden previously said he disagreed with Trump\u2019s approach to China, but is not in a hurry to reverse his predecessor\u2019s policies. His administration had suggested that it\u2019s open to using tariffs to fight China\u2019s unfair trade practices. \n \n\n \n Some observers said the tariffs could give the U.S. leverage over China . \n "

"U.S. companies are bearing the brunt of Trump\u2019s China tariffs, says Moody\u2019s"

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