As President Trump continues to claim that China is paying his tariffs, voices from China disagree, reports Bloomberg.
Furniture salesman Mack Yuan from Zhejiang says, “We don’t pay any tariffs.”
Yuan’s company Dakang Holdings Co. sells around 50% of its products to the U.S., including to Walmart Inc. and Costco Wholesale Corp.
Yuan’s confidence stems partly from his company’s products that aren’t easily replaceable for U.S. buyers, such as gaming and office chairs.
As Walmart raised the price of their products by almost 10%, U.S. sales were unaffected. says Yuan. A spokesperson for Walmart declined to comment on specific cases.
The impact of Trump’s May tariff increase of $200 billion of Chinese imports to 25% from 10% is beginning to show in supply chains.
Evidence from Chinese companies suggests it will primarily affect lower-end products, while many companies further up the value chain may remain untouched.
What is more certain, however, is that the rising costs will be felt across the world economy.
In some cases, prices will rise for American consumers in some cases. In others, Chinese and American corporate profits will benefit. Nations caught in between might experience slowed growth.
Tao Doug, vice chairman for Greater China at Credit Suisse Private Banking in Hong Kong says,“China probably loses most on paper because it has a big trade surplus with the U.S.”
“The U.S. consumer needs to pay as well. Most other countries run surpluses against China, so if the Chinese economy slows down many others will as well.”
Some non-Chinese companies may attract new business as buyers source from alternative markets, but the overall effects from the trade war are negative for just about everyone.
Chua Hak Bin, senior economist at Maybank Kim Eng Research Pte, said, “There will be significant trade destruction and trade disruption for most countries.”
“Many countries, especially more open export-oriented economies including Singapore, will risk slipping into a recession.”