<\/p>\n
Higher tariffs weakened investment expansion by 0.3 percentage points through the end of 2019 and will subtract another 1.6 points this year, according to the report by economists Mary Amiti, a vice president at the New York Fed, and Columbia University\u2019s Sang Hoon Kong and David Weinstein.<\/p>\n
<\/p>\n
American firms bore almost all the cost of higher U.S. import duties, and those that export to China also became became less profitable due to Chinese tariffs, the report said. That counters President Donald Trump\u2019s oft-repeated assertion that China pays his tariffs.<\/p>\n
<\/p>\n
The trade war also probably caused a slowdown in the Chinese economy, reducing the return on investment that American companies made there, the authors found. Using a comparison of stock prices, they forecast lower expected profitability to hurt investment growth.<\/p>\n
<\/p>\n
\u201cDiscussions of the trade war often focus only on U.S. exports to and imports from China, missing the much larger exposure of U.S. firms emanating from their subsidiaries in China,\u201d the report said.<\/p>\n
<\/p>\n
The researchers estimate that about 46% of U.S. firms are exposed to China through importing, exporting or selling through subsidiaries, and that on average they got 2.3% of revenue from China.<\/p>\n
<\/p>\n
Trump started putting tariffs on Chinese goods in 2018, saying that the nation had long taken advantage of the U.S. China answered with penalties on U.S. goods. Despite announcing a partial trade deal in January, hundreds of billions of dollars in tariffs remain in place.<\/p>\n
<\/p>\n
\u201cThis substantial rise in bilateral tariffs is likely to have affected the expected profitability of U.S. firms through a number of channels,\u201d the economists wrote.<\/p>\n
<\/p>\n
\u00a9 2019 Bloomberg L.P<\/em><\/p>\n gCaptain<\/p>\n","protected":false},"excerpt":{"rendered":" Higher tariffs weakened investment expansion by 0.3 percentage points through the end of 2019 and will subtract another 1.6 points this year, according to the report by economists Mary Amiti, a vice president at the New York Fed, and Columbia University\u2019s Sang Hoon Kong and David Weinstein. American firms bore almost all the cost of …<\/p>\n","protected":false},"author":1,"featured_media":10672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[6972,3290,1083,1439,1874,2221,6971,2222],"class_list":["post-10671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-world","tag-caps","tag-cut","tag-market","tag-shows","tag-study","tag-trade","tag-trillion","tag-war"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/10671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=10671"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/10671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/10672"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=10671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=10671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=10671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}