Tariffs on Chinese goods have a real impact

US imports of Chinese goods listed in the initial $34 billion of tariffs have fallen by 30%

Research from UBS shows President Trump’s tariffs on Chinese goods are having a material effect on US-China trade. The analysts reviewed US import data for $34 billion of products that fell within the first tranche of US tariffs on July 6. And the decline has been “sharp and unambiguous”.

“The modest uptick in September data, however, gives us hope that the adjustment period for these imports has now drawn to an end,” UBS said. It was a similar story for products in the second tranche of tariffs on an additional $US16 billion worth of goods, which was implemented on August 23. US imports of those products fell by 32% in August and September. However, the figure is overstated because imports of those items jumped in July.

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