NEW YORK, May 23 (Reuters) - The newest round of U.S. tariffs on Chinese imports will cost the typical American household $831 annually, according to research on Thursday from the Federal Reserve Bank of New York.
Washington this month hiked existing tariffs on $200 billion in Chinese goods to 25% from 10%, prompting Beijing to retaliate with its own levies on U.S. 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 U.S. is able to collect from its tariffs on Chinese goods, the authors of the report wrote. (Reporting by Trevor Hunnicutt Editing by Chizu Nomiyama)