FRANKFURT, March 30 (Reuters) – U.S. consumers and importers take the vast majority of the financial hit \u200cfrom tariffs but trade volumes also suffer, \u200cresulting in a negative shock for exporters, too, a European Central \u200bBank Economic Bulletin article said on Monday.<\/p>\n
The U.S. imposed a raft of tariffs on most trading partners last year and economists have been debating who would take the \u200cbiggest hit after \u2060the Trump administration predicted that exporters would pay the cost.<\/p>\n
“Exporters to the United States \u2060are absorbing only a small fraction of higher tariff-related costs,” the ECB’s study said. “Their costs are falling mostly on \u200bdomestic importers \u200band consumers.”<\/p>\n
The U.S. consumer \u200bnow pays about a \u200cthird of the cost and over the longer term, this share could rise to over half as U.S. firms exhaust their ability to absorb costs, the ECB said.<\/p>\n
This implies that U.S. firms would absorb around 40% \u200cof higher tariff costs in \u200bthe longer term, the article \u200badded.<\/p>\n
But European exporters \u200bare not immune either as the estimated \u200cimpact of tariffs on import \u200bvolumes is large, \u200bthe ECB predicted.<\/p>\n
The paper said in the case of product categories that are still traded under \u200btariffs, a 10% \u200cincrease in the duties would result in a \u200b4.3% decline in import volumes.<\/p>\n
(Reporting by Balazs \u200bKoranyi; Editing by Jamie Freed)<\/p>\n","protected":false},"excerpt":{"rendered":"FRANKFURT, March 30 (Reuters) – U.S. consumers and importers take the vast majority of the financial hit \u200cfrom…\n","protected":false},"author":2,"featured_media":554102,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,246294,83236,246293,101,246296,246295,759,246297],"class_list":["post-554101","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-domestic-importers","tag-ecb","tag-economic-bulletin","tag-economy","tag-european-central","tag-european-exporters","tag-tariffs","tag-trade-volumes"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/554101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=554101"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/554101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/554102"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=554101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=554101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=554101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}