Fox News' Chris Wallace challenges the idea that China is paying for Trump's tariffs

(Image credit: Screenshot/Fox News)

last updated 12 May 2019

White House economic adviser Larry Kudlow on Sunday acknowledged to Fox News' Chris Wallace during an appearance on Fox News Sunday that the recently implemented tariffs on goods imported into the U.S. from China will have ramifications for U.S. companies and consumers, alike.

Wallace, The Hill writes, repeatedly pressed Kudlow on the subject, eventually leading the director of the National Economic Council to admit that both countries could feel adverse economic effects as a result of the policy. Wallace was trying to challenge the idea that China foots the bill for the tariffs, as espoused by President Trump.

In fact, tariffs are paid for by the importer, not the exporter. The buyer will then often pass that extra fee on to the consumer by raising prices, The Associated Press reports. Of course, the importer could always cease purchasing goods from the exporter because of the increased cost. If U.S. companies decide to take that route going forward, China's economy would likely be hurt, especially in terms of GDP loss, as Kudlow pointed out to Wallace.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Explore More

Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.

Subscribe to The Week

Sign up for The Week's Free Newsletters

Sign up for Today's Best Articles in your inbox