White House economic adviser Larry KudlowLawrence (Larry) Alan KudlowMORE on Sunday contradicted President TrumpDonald John TrumpBooker backpedals after comparing Warren’s Facebook proposal to Trump Booker: ‘Thoughts and prayers’ after gun violence are ‘bullshit’ Mike Pence tells Liberty University graduates to prepare to be ‘shunned,’ ‘ridiculed’ for being a Christian MORE, saying he didn’t disagree with the characterization that China is not paying the tariffs on goods coming into the U.S. 

Kudlow made the comments after Fox News anchor Chris WallaceChristopher (Chris) WallaceThe Memo: Pelosi’s ‘tone-deaf’ remarks raise ire of Team Trump Scarborough: Pompeo ‘disgracing himself’ by ‘insulting’ Fox’s Chris Wallace Chris Wallace: Democratic attempt to question Barr with staffers ‘a bit of a stunt’ MORE repeatedly pressed him on “Fox News Sunday” about Trump’s recent comments in regard to trade with China. 


“It’s not China that pays tariffs. 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,” Wallace said.

“Fair enough. In fact, both sides will pay in these things, and of course it depends,” Kudlow responded, with Wallace interjecting to point out that “if it’s a tariff on goods coming into the country, the Chinese aren’t paying.”

“No, but the Chinese will suffer [gross domestic product] losses and so forth with respect to a diminishing export market and goods that they may need,” Kudlow said. 

Wallace replied by noting that Trump has said China pays the tariffs.

“They may suffer consequences, but it’s U.S. businesses and U.S. consumers who pay, correct?” he asked. 

Kudlow responded by saying he didn’t disagree with that characterization, adding that both sides will suffer because of new tariffs. 

Trump said last week that his new round of tariffs on $200 billion worth of imports from China would benefit the U.S. The tariff hike came as China and the U.S. continue to negotiate a trade agreement. 

“Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products,” Trump tweeted

New tariffs are not paid by the Chinese government but rather U.S. importers of impacted Chinese goods. Companies normally pass that cost on to consumers by raising prices, The Associated Press reported.

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