Quote:In the current case many of the goods imported into the US are made by US corporations in China. Of the US$539 billion exports from China to the United States, a substantial portion is from US companies shipping inputs for assembly in China. Another 20 percent are OEM products produced for US corporations. The tariffs are not paid by China. They are either absorbed by US corporations, which reduces profits, or passed onto consumers who pay higher prices for goods, which adds to inflation.
According to estimates made by JP Morgan Chase, the tariffs will cost the average American family around US$1,000 per year. This is expected to deeply dampen Christmas spending. The major US retailer Macy’s share value dropped by 13 percent late last week. Share prices of other US retailers also fell. The only thing that will hurt China is a reduction in demand for goods bound to the US, thus reducing some employment. However, China is reducing the value of its currency, the yuan, to compensate for the new tariffs.. The US’s Trade War Fallacy – Asia Sentinel