Nov 24, 2018 - Economy

Analysis: Trump's trade war with China might be working

Donald Trump in the bottom right corner of the photograph with an American flag behind him.

Photo: Cheriss May/NurPhoto via Getty Images

About three-quarters of the burden of President Trump’s tariffs imposed on $250 billion worth of Chinese goods will fall on Chinese exporters while U.S. consumers and companies will only see an average 4.5% price increase on the affected goods, according to a new analysis by EconPol Europe.

Why it matters: The paper indicates that Trump's trade war against China might be working, in that some calibrations indicate the bilateral trade deficit between the U.S. and China may fall by 17% and Trump's efforts could reduce American imports of certain Chinese goods.

Editor's note: This piece was clarified to add further information from the brief and to show more clearly how the tariff burden may be distributed.

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