New tariffs on Chinese goods to cost typical US household $1,148 a year

Chinese shipping containers are stored beside a US flag after they were unloaded at the Port of Los Angeles in Long Beach, California on May 14, 2019.
Chinese shipping containers are stored beside a US flag after they were unloaded at the Port of Los Angeles in Long Beach, California on May 14, 2019.PHOTO: AFP

NEW YORK (REUTERS) - The newest round of US tariffs on Chinese imports will cost the typical American household US$831 (S$1,148) annually, according to research on Thursday (May 23) from the Federal Reserve Bank of New York.

Washington this month hiked existing tariffs on US$200 billion in Chinese goods to 25 per cent from 10 per cent, prompting Beijing to retaliate with its own levies on US imports, as talks to end a 10-month trade war between the world's two largest economies stalled.

Research published by the New York Fed estimated that as tariffs grow larger importers have more of an incentive to switch to goods from more expensive countries. That could end up reducing the revenue the US is able to collect from its tariffs on Chinese goods, the authors of the report wrote.