Larry Kudlow in Trump: Promises Kept / Promises Broken

On Free Trade: With tariffs, US consumers suffer but China suffers more

White House economic adviser Larry Kudlow acknowledged that the Chinese do not directly pay tariffs on goods coming into the US, contradicting Pres. Trump's claims that China will pay for tariffs imposed by the US. Kudlow said that "both sides will suffer on this," but argued that China will suffer significant GDP losses as export markets are hit. The blow to US GDP won't be substantial since the economy is "in terrific shape," he said.

Fox News pressed Kudlow about Trump's claims. "It's not China that pays tariffs," the Fox host said. "It's the American importers that pay what, in effect, is a tax increase and oftentimes pass it on to US consumers."

"Fair enough," Kudlow replied. "In fact, both sides will pay. Both sides will pay in these things." Kudlow added, however, that China doesn't actually pay the tariffs, but that their GDP will suffer "with respect to a diminishing export market. This is a risk we should and can take without damaging our economy in any appreciable way."

Source: CNBC's coverage of Trump Promises, "China Tariffs" May 12, 2019

The above quotations are from Promises Kept / Promises Broken Comparison of Trump campaign vs. Trump Administration. Click here for main summary page. Click here for a profile of Larry Kudlow. Click here for Larry Kudlow on all issues.
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Page last updated: Jan 03, 2022