US President Donald Trump’s tariffs on Chinese imports are biting into the income of some American retail-focused companies, with at least two already in bankruptcy court and others forecasting significant losses.
Exporters were shouldering a relatively small share of duties on goods sent from China to the US, leaving American firms to absorb the remaining costs or pass them on to consumers , according to minutes from the Federal Open Market Committee’s meeting on July 29-30, citing the views of its participants.
Economists warned this would translate into higher prices if the tariffs remained in place.
Most imports from China currently face a 55 per cent tariff , including increases under both Trump’s presidential terms. The US president has said the duties would help balance trade and stimulate industry at home.
“The tariffs are across-the-board, so most US companies that import goods from China are seeing costs rise,” said Christopher Beddor, deputy China research director with Gavekal Dragonomics in Hong Kong.
He warned that lay-offs were imminent, adding that firms would “in turn pass some of the increase on to customers”.
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