Report
Patrick Artus

Are US imports from China sensitive to the prices of these imports?

In 2018, the United States imposed a 25% tax on USD 50 billion of technological imports from China, and 10% tax on USD 200 billion of other goods. Donald Trump is threatening to impose a permanent 25% tax on USD 200 billion of Chinese imported products (that has been the case since May 2019), and even on all US imports from China (USD 540 billion per year). To determine the effect of these potential tariffs, we have to look at the sensitivity of US import s from China to prices. We look at how they have reacted to fluctuation s in the Chinese renminbi’s exchange rate. We see clearly a negative effect of the appreciation of the RMB since 2006 on the size of US imports from China, which are therefore apparently sensitive to their prices.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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