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在线翻译:
szdaily -> World Economy -> 
Escalating trade spat to hit US consumers
    2019-09-03  08:53    Shenzhen Daily

THE United States and China on Sunday put in place their latest tariff increases on each other’s goods, potentially raising prices Americans pay for some clothes, shoes, sporting goods and other consumer items before the holiday shopping season.

U.S. President Donald Trump said U.S.-China trade talks were still on for September. “We’ll see what happens,” he told reporters as he returned to the White House from the Camp David presidential retreat.

The 15 percent U.S. taxes apply to about US$112 billion in Chinese imports. All told, more than two-thirds of the consumer goods the United States imports from China now face higher taxes. The administration had largely avoided hitting consumer items in its earlier rounds of tariff increases.

But with prices of many retail goods now likely to rise, the Trump administration’s move threatens the U.S. economy’s main driver: consumer spending. As businesses pull back on investment spending and exports slow in the face of weak global growth, U.S. shoppers have been a key bright spot for the economy.

“We have got a great economy,” said Senator Pat Toomey. “But I do think that the uncertainty caused by volatile tariff situation and this developing trade war could jeopardize that strength, and that growth, and that is, I think, that’s a legitimate concern,” he told ABC’s “This Week.”

As a result of Trump’s higher tariffs, many U.S. companies have warned that they will be forced to pass on to their customers the higher prices they will pay on Chinese imports. Some businesses, though, may decide in the end to absorb the higher costs rather than raise prices for their customers.

In China, authorities began charging higher duties on American imports at midday Sunday, according to employees who answered the phone at customs offices in Beijing and the southern port of Guangzhou. They declined to give their names.

Tariffs of 10 percent and 5 percent apply to items ranging from frozen sweet corn and pork liver to marble and bicycle tires, the government announced earlier.

After Sunday’s move, 87 percent of textiles and clothing the United States buys from China and 52 percent of shoes will be subject to import taxes.

On Dec. 15, the Trump administration is scheduled to impose a second round of 15 percent tariffs — this time on roughly US$160 billion in imports. If those duties take effect, virtually all goods imported from China will be covered.

The Chinese Government has released a list of American imports targeted for penalties Dec. 15 if the U.S. tariff hikes take effect. In total, China said Sunday’s penalties and the planned December increases will apply to US$75 billion in American goods.

Trump has insisted that China itself pays the tariffs. But in fact, economic research has concluded that the costs of the duties fall on U.S. businesses and consumers. Trump had indirectly acknowledged the tariffs’ impact by delaying some of the duties until Dec. 15, after holiday goods are already on store shelves.

A study by J.P. Morgan found that Trump’s tariffs will cost the average U.S. household US$1,000 a year. That study was done before Trump raised the Sept. 1 and Dec. 15 tariffs to 15 percent from 10 percent.

Trump has also announced that existing 25 percent tariffs on a separate group of US$250 billion of Chinese imports will increase to 30 percent Oct. 1.

That cost could weaken an already slowing U.S. economy. Though consumer spending grew last quarter at its fastest pace in five years, the overall economy expanded at just a modest 2 percent annual rate, down from a 3.1 percent rate in the first three months of the year.

The U.S. economy is widely expected to slow further in the months ahead as income growth slows, businesses delay expansions and higher prices from tariffs depress consumer spending. Companies have already reduced investment spending, and exports have dropped against a backdrop of slower global growth.

Americans have already turned more pessimistic. The University of Michigan’s consumer sentiment index, released Friday, fell by the most since December 2012. (SD-Agencies)

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