Courtesy of NBC News:
Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.
The bank said in a note that consumer prices are higher partly because Chinese exporters have not lowered their prices to better compete in the US market.
Trump has repeatedly — and inaccurately — claimed that China will pay for tariffs imposed by the U.S.
“One might have expected that Chinese exporters of tariff-affected goods would have to lower their prices somewhat to compete in the US market, sharing in the cost of the tariffs,” Goldman said.
“However, analysis at the extremely detailed item level in the two new studies shows no decline in the prices (exclusive of tariffs) of imported goods from China that faced tariffs.”
In addition, US producers have “opportunistically” hiked prices in response to protection from Chinese competitors, the bank said.
These tariffs were never going to hurt China and Trump’s constant insistence that they would reveals his vast ignorance about trade with foreign countries.
And his obvious lies about America recouping “billions of dollars” from China only make him look even more incompetent.
Yes it is true that China has taken advantage of America in years past, but there is no real expert on trade who would believe that Donald Trump knows the first thing about rectifying that imbalance.
And all he has accomplished with these tariffs is to weaken America’s position and strengthen China’s.
We would have had better luck allowing an orangutan to negotiate with China on our behalf.
Or, is that what just happened?