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.
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