In an appearance on “Fox News Sunday” this week, White House economic adviser Larry Kudlow faced a series of pointed questions related to increased tariffs on a wide range of Chinese imports.
“It’s not China that pays tariffs,” anchor Chris Wallace said in reference to tweets from President Donald Trump. “It’s the American importers, the American companies that pay what in effect is a tax increase and oftentimes passes it on to U.S. consumers.”
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
“Fair enough,” Kudlow acknowledged. “In fact, both sides will pay in these things, and of course it depends.”
Wallace noted again that “the Chinese aren’t paying” the tariff imposed by the U.S. on imported goods.
“No, but the Chinese will suffer [gross domestic product] losses and so forth with respect to a diminishing export market and goods that they may need,” Kudlow responded.
The anchor pressed on, asking his guest: “They may suffer consequences, but it’s U.S. businesses and U.S. consumers who pay, correct?”
While Kudlow did not disagree with the assertion contradicting Trump’s tweets, he reiterated his previous point that both parties are negatively impacted by increased tariffs.