Hiked tariffs won't hamper China's growth

After the 11th round of Sino-US trade talks, the representatives of the two sides said they were willing to continue consultations. But now that the United States administration has raised the tariffs on $200 billion of Chinese goods from 10 percent to 25 percent, the question to ask is: What impact could Washington's move have on the US and Chinese economies?

It is widely believed that additional tariffs imposed by the US on Chinese goods have so far added up to $2 billion to the US coffers. But the 10 percent tariff increase from the previous round seems to have been paid by US companies and consumers. Besides, US importers' profits will shrink if they do not pass the costs of higher tariffs on to US companies downstream and consecutively to the US consumers. So the ultimate burden of the tariffs will be borne by US consumers.

US consumers bear burden of higher tariffs