Chris Wallace Busts Kudlow for Trump’s Claim on China Tariffs: ‘But Larry, That Isn’t True’
Fox News’ Chris Wallace pressed White House economic adviser Larry Kudlow on who might bear the costs of President Donald Trump’s tariffs on Chinese trade, with Kudlow pretty quickly admitting that’s not really the case.
During FOX News Sunday, Wallace played a clip of Trump talking about tariffs, in which the president said tariffs are “paid for mostly by China, not by us.”
“But Larry, that isn’t true,” said Wallace. “It’s not China that pays tariffs, it’s the American importers, the American companies, that pay what is, in effect, a tax increase, and oftentimes they pass it on to American consumers.”
Kudlow offered a surprisingly immediate concession on that point.
“Uh, fair enough,” he said. “In fact, both sides will pay, both sides will pay in these things.”
“Well if it’s a tariff on goods coming into the country, the Chinese aren’t paying,” Wallace pointed out.
Kudlow agreed but added, “the Chinese will suffer GDP losses with respect to a diminishing export market,” among other economic costs.
When Wallace noted Trump said that China pays the tariffs, “they may suffer consequences” but in reality “it’s U.S. businesses and U.S. consumers who pay,” Kudlow again conceded that American consumers will “suffer.”
“I don’t disagree with that,” Kudlow responded before saying “again, both sides, both sides will suffer on this.”
Watch the clip above, courtesy of FOX News Sunday.
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