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Tag Archives: tariffs

Tariffs and Inflation

Tariffs and Inflation Kevin Quinn, Econospeak  Jason Furman and Janet Yellen have both suggested that cutting Trump’s tariffs would be anti-inflationary. But most economists agree that the incidence of the tariffs is for the most part on US consumers, not foreign suppliers (pace the treasonous and ignorant former president, who crowed about all the revenues we were raising from China). So how is a tax cut anti-inflationary?  There is a supply-side...

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Who Pays the Tax on Imports from China? — Matthew Higgins, Thomas Klitgaard, and Michael Nattinger, FRBNY

Tariffs are a form of taxation. Indeed, before the 1920s, tariffs (or customs duties) were typically the largest source of funding for the U.S. government. Of little interest for decades, tariffs are again becoming relevant, given the substantial increase in the rates charged on imports from China. U.S. businesses and consumers are shielded from the higher tariffs to the extent that Chinese firms lower the dollar prices they charge. U.S. import price data, however, indicate that prices on...

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“Across-the-Board Tariffs on China with Retaliation and Federal Spending Create Over 1 Million Jobs in Five Years” — Menzie Chinn

I’ve read the “working paper” (and the preceding paper) a couple of times, and am not clear what happens — the results are based on splicing two models (REMI and BCG data) and running out the results. Alarm bells went off in my head when I read this: You decide.Econbrowser“Across-the-Board Tariffs on China with Retaliation and Federal Spending Create Over 1 Million Jobs in Five Years”Menzie Chinn | Professor of Public Affairs and Economics, Robert M. La Follette School of Public Affairs,...

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Kenneth Rapoza — Trump’s Base in Panic Over 25% Tariffs on China Goods

“I don’t think people really understand what is at stake,” says Alex Camera, CEO of Audio Control, a privately held, small business manufacturing audio sound equipment near Seattle, Washington. He imports electronic components from China and makes things like power amplifiers for cars. They design it and put it together in Washington. “Trump says China is paying these tariffs, but they are not. I am. U.S. companies are paying it at the port.” Tariffs are port taxes due at the time of...

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Menzie Chinn — “So China Is Now Paying Us Billions of Dollars in Tariffs”

How does a tariff work? A tariff is a tax on imported goods, so if a Chinese good is sold to an American, the American literally has to pay the tax. The quote above is from Mr. Trump, as recounted in Peter Coy’s “The Real Pain From Trump’s Tariffs Trickles Down to Consumers” in Bloomberg Businessweek; it clearly highlights the fact that either (1) Mr. Trump has no understanding of how tariffs work, or (2) he does understand, and he’s lying.... Trump is apparently assuming that the price...

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David Koenig — President Trump Says Apple Can Avoid Tariff Consequences by Opening U.S. Plants

President Donald Trump concedes that some Apple Inc. products may become more expensive if his administration imposes “massive” additional tariffs on Chinese-made goods, but he says the tech company can fix the problem by moving production to the U.S. “Start building new plants now. Exciting!” Trump said Saturday in a tweet aimed at the Cupertino, California-based company.... TimePresident Trump Says Apple Can Avoid Tariff Consequences by Opening U.S. Plants David Koenig | A P

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