File photo of US-China flag. Photograph:( Reuters )
Imposition on tariffs on goods imported from China will have a negative impact on the United States itself and the rest of the world said expert on international trade
Imposition on tariffs on goods imported from China will have a negative impact on the United States itself and the rest of the world and it is US consumers and businesses that will ultimately have to pay for the additional tariffs imposed by the United States to goods imported from China, said expert on international trade on Wednesday.
The expert made the remarks during an interview with the China Central Television (CCTV) in response to the decision by the US administration of President Donald Trump to increase the additional tariffs on 200 billion US dollars' worth of Chinese goods from 10 per cent to 25 per cent on May 10, and has threatened to raise tariffs on more Chinese imports.
Brian Peck, director of the Center for Transnational Law and Business with the University of Southern California's Gould School of Law said: "Despite what President Trump said, claiming that the Chinese pay the tariff on Chinese imports to the United States, it's, in fact, US consumers and businesses that have to pay them. Tariffs are tax, the tax on imports, so the receivers of those goods are the ones that have to pay the tax. It US consumers and businesses."
He said, "These are things consumers buy on a daily basis and they are going to have a significant price increase because of these tariff raises. So that's going to have a negative impact on consumer spending; business investment decisions will have to put on hold; global supply chains also can be negatively affected. So the longer it prolongs, the more of negative impact will have on the US economy."
Peck said, "I think the other sector that is deeply hurt by these tariffs is the US farmers, especially soybean farmers, because they are a losing tremendous amount of sales to the Chinese market, it has been replaced by other suppliers from other parts of the world. So now there is an immediate negative impact on farmers, but over the long term, they may have lost its market for good."
Peck said, "The International Monetary Fund, the IMF, has reported that global expansion decreased dramatically when this tariff war started last year. And its expected growth rate for this year has been significantly reduced because of the prolonged trade war," he added.