Retailers, not consumers, facing the brunt of trade war tariffs: Study

The tariffs imposed by President Trump as part of his trade war with China are mainly cutting into retailers’ profits rather than raising costs for consumers, according to a new study.

The finding, published in a paper circulated by the National Bureau of Economic Research on Monday, runs counter to the narratives advanced by both critics and defenders of the tariffs. Trump has repeatedly insisted that the tariffs are a net gain for the United States because they are paid by the Chinese and result in additional Treasury Department revenue. Critics of Trump’s tariffs, especially in the business community, have argued that they amount to taxes on businesses and, especially, consumers, to whom the increased costs are usually passed along.