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Sun May 12, 2019, 05:59 PM

Kudlow acknowledges U.S. consumers, not China, pay for tariffs on imports

https://www.washingtonpost.com/politics/kudlow-acknowledges-us-consumers-not-china-pay-for-tariffs-on-imports/2019/05/12/3cbe100e-74b9-11e9-b3f5-5673edf2d127_story.html

Kudlow acknowledges U.S. consumers, not China, pay for tariffs on imports
By Felicia Sonmez
May 12 at 5:16 PM

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



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Reply Kudlow acknowledges U.S. consumers, not China, pay for tariffs on imports (Original post)
dalton99a May 2019 OP
durablend May 2019 #1
riversedge May 2019 #2
MichMan May 2019 #3
underpants May 2019 #4
DFW May 2019 #5
Sherman A1 May 2019 #6
riversedge May 2019 #7

Response to dalton99a (Original post)

Sun May 12, 2019, 06:05 PM

1. How big is that Trump bus anyway?

Surely must be running out of room under it by now....

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Response to dalton99a (Original post)

Sun May 12, 2019, 06:06 PM

2. " contradicting President Trump's repeated inaccurate claim that the Chinese foot the bill."

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Response to dalton99a (Original post)

Sun May 12, 2019, 06:12 PM

3. No different than any other types of taxes

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Response to dalton99a (Original post)

Sun May 12, 2019, 06:26 PM

4. Actually he didn't. At all. WaPo is covering for this moron.

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Response to dalton99a (Original post)

Sun May 12, 2019, 06:31 PM

5. Consumers in the importing country pay the tariffs.

The exporting country charges the same price to any and all comers. If Trump puts a 30% tariff on certain Chinese goods, they don't cost a cent more to anyone else buying them from China. They cost 30% more to the American customers importing them, who pay 30% to Mnuchin for the privilege.

Of course, if China sells them to Albania, and the Albanian importers can convincingly re-label them as Albanian products, someone in Albania will get rich selling them to the USA, our trade deficit with Albania will mysteriously explode, and the whole theatrical production becomes a sham. The Chinese are no fools, and neither is the Department of Commerce, so it won't happen with Albania (that was just a simplified example), but rather with a myriad of countries we regularly do a lot of business with, such as Korea, Japan, Britain, France, Germany, Australia, and about 30 etc. It's a sham all the same.

Getting around the tariffs will be time-consuming and require a ton of paperwork, but it will eventually get done. It's the same reason there is still a cocaine trade. If there is demand, and if there is supply, they will get together.

An Iranian-exile friend of mine tells me that Iran does business with every country in the world except Israel. USA? No sweat. Sanctions, schmanktions. It gets done, just under flags of convenience, so that the politicians (on both sides) can show how tough they are.

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Response to DFW (Reply #5)

Sun May 12, 2019, 07:17 PM

6. Precisely

There will be work arounds, but everything will cost the consumer more either way.

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Response to dalton99a (Original post)

Mon May 13, 2019, 08:38 AM

7. Smart folks who did not listen to Trump lies already knew this!!

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