‘In fact, both sides will pay. Both sides will pay in these things.’
That’s White House economic adviser Larry Kudlow on Sunday offering his “both sides” take in an interview on Fox News.
He was acknowledging that China, in fact, does not directly pay tariffs on goods coming into the U.S., breaking from President Trump.
Trump, who has argued that trade wars are “good and easy to win,” suggested on Saturday that the U.S. was “collecting” tariffs from China.
Kudlow initially explained that China will suffer significant GDP losses as export markets are hit, while the impact to U.S. growth will be relatively insignificant, thanks to the “terrific” Trump economy.
But Fox host Chris Wallace pressed him on the issue.
“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.”
While Kudlow conceded that “both sides” will feel the pinch of a trade war, he maintained that “this is a risk we should and can take without damaging our economy in any appreciable way.”
Watch the interview:
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