rain.png
Thursday May 28th, 2020 12:24AM

Kudlow's admission about who pays tariffs contradicts Trump

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — The White House's top economic adviser has acknowledged that U.S. consumers and businesses pay the tariffs that the Trump administration has imposed on billions of dollars of Chinese goods, even as President Trump himself insisted in a tweet, incorrectly, that China pays.

Chris Wallace, host of "Fox News Sunday," asked him, "It's U.S. businesses and U.S. consumers who pay, correct?"

"Yes, I don't disagree with that," said Larry Kudlow, the head of the president's National Economic Council.

Kudlow added, "Both sides will pay," but he stipulated that China "will suffer (economic) losses" from reduced exports to the U.S., not from paying the tariffs.

Kudlow's admission contradicts many of Trump's comments and tweets to the effect that Chinese companies pay the tariffs in what amounts, in the president's view, to a massive transfer of wealth to the United States from China. Yet almost no economist has agreed with Trump's view and fact-checkers routinely brand Trump's assertion false and point out that American importers of goods from China pay the tariffs.

Trump has also asserted that trade wars are "easy to win," but Kudlow accepted that they come with costs for the U.S. economy, though he downplayed the impact.

On Friday, the Trump administration raised duties on $200 billion of Chinese imports to 25% from 10%, after charging that China had backtracked on commitments it made earlier in the talks. The administration has already hit $50 billion of additional Chinese goods with 25% duties.

Later Sunday, Trump reiterated his view in a tweet: "We will be taking in Tens of Billions of Dollars in Tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries."

Yet Carl Weinberg, chief international economist at High Frequency Economics, a forecasting firm, pointed out that many goods made in China aren't manufactured elsewhere. That's why many U.S. importers have little choice but to pay the tariff.

"So if you need that new iPad, it is you who will be paying the import duty, not some worker in China," Weinberg wrote in a research note.

Trump has also threatened to impose import taxes on the remaining $300 billion in Chinese imports, a step that Kudlow estimated would take several months to implement.

Imposing those tariffs would impact a wide range of consumer goods — clothes, shoes, toys, and electronics such as iPhones — that have been mostly exempted so far and could prompt steep cost increases that many Americans would likely notice.

Kudlow, however, said the economic impact of placing tariffs on all Chinese imports would be to cut economic growth 0.2 percentage points, "a very modest number."

Independent economists, though, think the impact would be larger. Gregory Daco, an economist at Oxford Economics, estimates it would reduce U.S. growth by a half percentage point and cost 300,000 jobs.

Kudlow also said the U.S. is awaiting retaliation from China over the increased tariffs, after talks in Washington ended on Friday without a deal.

"The expected countermeasures have not yet materialized. We may know more today or even this evening or tomorrow," he told "Fox News Sunday."

Both sides have indicated that future talks are likely. Kudlow said on Sunday that Chinese officials have invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to visit Beijing, though nothing has been scheduled.

Kudlow also said that Trump and China's President, Xi Jingping, may meet in late June at the G-20 international conference in Japan.

On Saturday, Trump tweeted that he thought that "China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win."

Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports. And officials have targeted American companies operating in China by slowing customs clearance and stepping up regulatory scrutiny.

Sen. Rand Paul, R-Ky., told ABC's "This Week" that he advised the president to finalize a trade deal with China soon, "because the longer we're involved in a tariff battle or a trade war, the better chance there is that we could actually enter into a recession because of it."

The two countries are sparring over U.S. allegations that China steals technology and pressures American companies into handing over trade secrets, part of an aggressive campaign to turn Chinese companies into world leaders in robotics, electric cars and other advanced industries.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Online Headlines - Washington, AP World News, AP Business, AP Business - Economy
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Kudlow's admission about who pays tariffs contradicts Trump
Top White House adviser Kudlow admits US consumers, businesses pay tariffs
3:33AM ( 5 minutes ago )
Companies await China retaliation; weaker growth expected
Companies await Chinese retaliation for Trump tariff hikes as economists warn growth likely to suffer
3:20AM ( 17 minutes ago )
Filipinos voting in midterm elections crucial to Duterte
Filipinos voting in elections highlighted by a showdown between Duterte's allies and an opposition fighting for check and balance under a president they regard as a looming dictator
3:15AM ( 22 minutes ago )
Associated Press (AP)
The Latest: Iran warns against 'conspiracy' on Saudi tankers
The Latest: Iran warns against 'conspiracy' over Saudi tankers that kingdom said were 'sabotaged'
1:15AM ( 2 hours ago )
San Francisco may ban police, city use of facial recognition
San Francisco is on track to become the first U.S. city to ban the use of facial recognition by police and other city agencies as the technology creeps into daily life
1:03AM ( 2 hours ago )
GOP recruiting women, political outsiders to run for House
Republicans are recruiting women, minorities and people with compelling backgrounds as they recruit House candidates for next year's elections.
12:27AM ( 3 hours ago )
AP National News
Leonard hits bouncer at buzzer, Raptors beat 76ers in Game 7
Kawhi Leonard hit a shot from the corner over Joel Embiid at the buzzer that bounced off the rim four times before falling to give the Toronto Raptors a 92-90 victory over the Philadelphia 76ers in Game 7 of the Eastern Conference semifinal series
11:55PM ( 3 hours ago )
The Latest: Saudi says 2 oil tankers damaged by sabotage
Saudi Arabia's energy minister says two Saudi oil tankers were sabotaged off UAE coast and sustained "significant damage"
11:41PM ( 3 hours ago )
US issues new warning to ships after 'sabotage' off UAE
The U.S. has issued a new alert to maritime traffic over alleged "acts of sabotage" of ships off the coast of the United Arab Emirates amid heightened regional tensions between America and Iran
11:23PM ( 4 hours ago )
Top General short headlines
Shares fall in Asia after no deal in China-US trade talks
Asian shares decline after China-US trade talks wind up without a deal
12:39AM ( 2 hours ago )
Lithuania's presidential contest heads to runoff vote
Results from Lithuania's presidential election indicate a prominent economist and a former finance minister will advance to a runoff ballot later this month to pick a successor to incumbent Dalia Grybauskaite
6:56PM ( 8 hours ago )
UAE says 4 ships targeted by 'sabotage' off its east coast
Authorities in the United Arab Emirates say "sabotage operations" have been conducted against four commercial ships off its eastern coast
5:55PM ( 9 hours ago )
AP Business
White House expects retaliation from China over tariffs
The president's chief economic adviser says he expects China to retaliate over tariff hikes, after talks in Washington ended without a trade deal
9:59AM ( 17 hours ago )
Trump has long seen previous US trade agreements as losers
President Donald Trump's combative approach to trade has been one of the main constants among his often-shifting political views
12:50PM ( 1 day ago )
Trump's tweeting about Russia probe, China trade
In a 46-minute flurry of retweeting, President Donald Trump took jabs at Democrats' pursuit of the Russia probe
11:30AM ( 1 day ago )
AP Business - Economy
Companies await China retaliation; weaker growth expected
Companies await Chinese retaliation for Trump tariff hikes as economists warn growth likely to suffer
3:20AM ( 17 minutes ago )
Filipinos voting in midterm elections crucial to Duterte
Filipinos voting in elections highlighted by a showdown between Duterte's allies and an opposition fighting for check and balance under a president they regard as a looming dictator
3:15AM ( 22 minutes ago )
NBC bets on comedy next year, 'This Is Us" for years to come
NBC will add sitcoms from Kenan Thompson, Fran Drescher this fall and commits to 'This Is Us' for three more years
3:08AM ( 29 minutes ago )
LEADING OFF: Fiers follows no-hitter, Cruz gets MRI on wrist
LEADING OFF: Fiers follows no-hitter, Cruz gets MRI on wrist, Brewers face another tough test in Philly, Astros roll into Detroit, Hicks comes off injured list for Yankees
3:04AM ( 34 minutes ago )
Saudi Arabia says 2 oil tankers damaged by sabotage attacks
Saudi Arabia says 2 oil tankers sabotaged off UAE coast in attacks that caused 'significant damage' to vessels
2:03AM ( 1 hour ago )