That’s economist Trump in 2018, as cited in Coy (2018). Now, from USITC “Financial Impression of Part 232 and 301 Tariffs on U.S. Industries” (web page 22), a conflicting evaluation.
The Fee’s econometric mannequin estimates that tariffs beneath sections 232 and 301 resulted in an almost one-to-one enhance in costs of U.S. imports following the tariffs. This suggests {that a} 10 p.c advert valorem tariff raised the worth of U.S. imports from China by about 10 p.c. This practically full pass-through (which means that costs obtained by exporters had been largely unaffected and costs paid by U.S. importers elevated by the identical quantity because the tariffs) is uncommon however has been equally discovered by different latest research, which conclude that U.S. importers have borne nearly the total burden of part 301 tariffs.
Right here is the estimated pass-through of tariffs into metal costs.
Supply: US ITC (2023).
Estimates of tariff pass-through are fairly shut to 1, i.e., a 25% advert valorem tariff ends in essentialy a 25% enhance in worth confronted by a home client (broadly outlined). Which means that we are paying the tariffs, not the Chinese language, in these two circumstances.
So, should you weren’t paying consideration, the US appears to be a small nation insofar as metal and aluminum markets are involved (see Econbrowser posts [1], [2], [3], – so contra Mr. Bruce Corridor’s remark).
