Import Tax of 45% Would Decimate Chinese Exports to US

Tuesday, January 31, 2017
By Paul Martin

SputnikNews.com
31.01.2017

If US President Donald Trump makes good on his promise to impose a 45 percent tax on imports from China, Chinese exports to the United States would drop by a hefty 39.1 percent, South Korea’s Yonhap News wrote, citing a report released on Monday by Hyundai Research Institute (HRI).

According to the report, titled “Trumponomics and its Impact on Chinese Economy,” an increase of just one percent in the cost of Chinese exports would lead to a 0.93 percent drop in the country’s exports.
So, if US import tax on Chinese goods is set at 15 percent, Chinese exports to the United States would shrink by almost $43 billion – an 11.2 percent drop from the 2012-2015 figure.

The current average US tariff on imports from China is less than 3 percent.

If the US import tariffs are set at 30 percent, Chinese exports to the US would be down by 25.1 percent ($96.6 billion), and a 45 percent tariff would cost China $149 billion.

America’s desire to raise import tariffs on Chinese goods stems from the glaring disproportions in the two countries’ trade balance. Since 2007.

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