Ask the Experts: How Will China Tariffs Affect Summer Shopping?

Quoted: “If the past is any guide, consumers, both households and firms, have taken the entire hit from the tariffs,” says Menzie Chinn, professor of Public Affairs and Economics in the La Follette School of Public Affairs at the University of Wisconsin-Madison. “Theory says in principle Chinese producers could absorb some of the cost, but, in practice, recent studies have indicated the entire burden has fallen on U.S. purchasers.”