President Donald Trump likes to say that China will pay the tariffs he’s set up on about $300 billion worth of the country’s exports to the United States. His top economic adviser says otherwise.
National Economic Council Director Larry Kudlow confirmed Sunday what other analysts have said for months: Tariffs are assessed against companies importing goods made in China. But these companies pass the costs on to their buyers, and ultimately the American consumer pays the higher prices.
Trump is right to complain about China’s economic practices. But his strategy of leveling the playing field with tariffs is likely to backfire.