Here Is How China Is Really 'Paying' For Tariffs

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Here Is How China Is Really 'Paying' For Tariffs
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Here is how China is really 'paying' for tariffs:

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The other way China is paying for the trade war is losing its role as the go-to nation in the global supply chain. Talk to an American company sourcing parts in China and you will hear the same thing: In the overall scheme of things, it looks like Chinese exporters can absorb all of an estimated $75 billion to $100 billion in higher costs due to tariffs. China's GDP expanded by $1.3 trillion last year.

Besides paying the price for trade wars at the port, U.S. companies may also pay for it on the NYSE. Especially the big ones that rely on China for manufacturing and sales, like Apple. The U.S. raised the tariff rate to 25% from 10% on $200 billion of China goods, effective May 10 and excluding goods-in-transit. On May 13, China responded by announcing four tiers of 25%, 20%, 10% and 5% tariff rates on $60 billion of goods effective June 1. The same day the U.S. Trade Representative requested for public comments on a proposal to impose up to 25% duty on further imports from China valued around $300 billion.

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