That was one of the items on the list of factors adding to inflationary pressures in China in this NYT article, but it doesn’t seem very plausible. China is on track to import a bit less than 0 billion worth of goods and services from the United S…
That was one of the items on the list of factors adding to inflationary pressures in China in this NYT article, but it doesn’t seem very plausible. China is on track to import a bit less than $140 billion worth of goods and services from the United States this year. This is less than 1.0 percent of China’s GDP measured at its exchange rate value. (Using a purchasing power parity measure this would be about 0.6 percent.)
Suppose that China’s trade war tariffs add 30 percent to the price of these imports (a very high assumption). This would push up the overall price level by 0.
