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Researchers say China is paying for trade war with the U.S.

China is paying for most of the trade war, according to EconPol Europe, a network of researchers in the European Union.

In a paper released last week, researchers say the greatest share of the tariff burden is falling on Chinese exporters. U.S. companies will only pay 4.5 percent more after the 25 percent tariffs on $250 billion of Chinese goods. Chinese producers will pay the remaining 20.5 percent.

Researchers say the Trump administration selected products that could be substituted so that the U.S. has been able to minimize negative effects on consumers and create net welfare gains.

But, researchers say the tariff burden may fall more on U.S. consumers if the trade war continues to escalate.

On Jan. 1, the U.S. is expected to raise tariffs to 25 percent from 10 percent on $200 billion of goods. China has retaliated with tariffs on $110 billion of U.S. goods.

President Trump and Chinese President Xi meet later this month at the G20 summit in Argentina.