However, the impact will be greater on China given its higher dependence on trade. An extension of tariffs would mean pushing up prices on a wide range of consumer goods which will feed through into inflation. This is because when tariffs are imposed on Chinese goods, US importers have to pay higher costs which they can either absorb into their margins or pass on to consumers. Only about 25% are on consumer goods. US companies raising prices as tariffs weaken China’s competitivenessUS companies have been complaining about higher costs.

Source: The Star May 25, 2019 01:30 UTC