United States: Across-the-board taxation of imports would wipe out the entire benefit of the tax reform

On top of the tariffs already in place, Donald Trump is planning to impose additional tariffs at a rate of 10% or even 25% on USD 200 billion of US imports from China. Given the low price elasticity of US imports in volume terms, these tariffs mainly lead to a rise in import prices, which we have already seen. If the tariffs are not redistributed to the economic agents who are hit by these higher import prices, this will be a taxation of companies and households in the United States. It runs counter to the positive effect of the tax reform, which it will neutralise, which shows how incoherent this economic policy is .