US President Donald Trump's tariffs on imported goods are almost entirely paid by American importers and consumers. This is reported by Bloomberg, citing data from the Kiel Institute for the World Economy, UNN reports.
Details
Thus, according to experts, only about 4% of the customs burden falls on foreign companies, the remaining 96% is passed on to American buyers, who pay duties and then are forced to either cover them at their own expense or raise product prices.
Tariffs function not as a tax on foreign producers, but as a consumption tax on Americans.
It is also indicated that the adjustment occurs due to a reduction in trade volumes, and not concessions in prices. At the same time, when faced with a choice between maintaining margins while reducing sales or reducing margins to maintain volumes, most exporters prefer the former.
Recall
Last week, Donald Trump announced that he was imposing 10% tariffs on NATO countries, including Great Britain, France, and Germany, due to their troops in Greenland. Tariffs will rise to 25% from June 1 and will remain in effect until an agreement on the purchase of Greenland.
In response, the European Union began preparing to suspend the ratification of a new trade agreement with the United States.