Trump adviser acknowledges US consumers, not China, pay for tariffs

By Felicia Sonmez | The Washington Post

National Economic Council Director Larry Kudlow acknowledged Sunday that American consumers end up paying for the administration’s tariffs on Chinese imports, contradicting President Donald Trump’s repeated claim that the Chinese foot the bill.

In an appearance on “Fox News Sunday” two days after U.S.-China trade talks ended with no news of a deal, Kudlow was asked by host Chris Wallace about Trump’s claim.

“It’s not China that pays tariffs,” Wallace said. “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.”

“Fair enough,” Kudlow replied. “In fact, both sides will pay. Both sides will pay in these things.”

Pressed again by Wallace, Kudlow acknowledged that China does not actually “pay” the tariffs.

“No, but the Chinese will suffer GDP losses and so forth with respect to a diminishing export market,” he said.

Kudlow added that “both sides will suffer on this.”

The latest round of trade talks ended Friday with no announcement of an agreement. This followed tweets from Trump defending his decision to more than double tariffs on $200 billion worth of Chinese imports.

“Talks with China continue in a very congenial manner — there is absolutely no need to rush — as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products,” Trump tweeted. “These massive payments go directly to the Treasury of the U.S.”

He also claimed that tariffs will “bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind.”

And Saturday, Trump suggested that the United States was “collecting” tariffs from China.

“Would be wise for them to act now, but love collecting BIG TARIFFS!” Trump said in a tweet.

The Washington Post’s Taylor Telford contributed to this report.