When the Trump administration imposed tariffs on Chinese imports last year, officials insisted China would pay the cost – implying Chinese firms would have to cut their prices to absorb import “taxes” of up to 25% when the goods hit U.S. shores. Instead, the prices Chinese firms charge have barely budged, meaning U.S. companies and consumers are paying the tariff costs, estimated at around $40 billion annually, New York Fed Reserve Bank researchers found in a study released on Monday. As a result of the U.S.-China trade war, U.S. Customs and Border Protection adds as much as 25% to the import price as Chinese goods enter the country.
