IMF says consumers biggest victims in trade war
According to this research coordinated by the IMF's chief economist, Gita Gopinath, and analyzing the imports from China, it was determined that tariff revenues collected have been borne almost entirely by US importers.
Some of the tariffs have been transferred to US consumers, such as washing machines while others have been absorbed by importing companies through lower profit margins. An additional increase in rates will likely be transferred in a similar way to consumers, the report set out.
The analysis of the IMF refers that the most recent escalation in the trade conflict between both economies could also significantly reduce the confidence of financial and business markets, interrupting supply chains and jeopardizing the projected recovery of global growth in 2019.
Over the world, the additional impact of new tariffs announced and expected recently by the United States and China, will substract around 0.3 percent of the global Gross Domestic Product in the short term, the IMF stressed.
The statement also argues that further restriction of imports would also make marketable consumer goods less affordable, hurting low-income households disproportionately.
It is, as a result of the panorama described, that the IMF refers to 2019 as a delicate year for the world economy.
Since the middle of 2018, the United States announced the imposition of tariffs on Chinese imports. The first of the announced amounts reached 34 billion dollars; the second accounted for 16 billion more and, recently, taxed an additional 200 billion. ■