(CNSNews.com) – National Economic Council Director Larry Kudlow admitted to “Fox News Sunday” that both China and the United States will pay when it comes to tariffs, because China will suffer losses to its Gross Domestic Product (GDP) but U.S. consumers will pay more.
Last week, President Donald Trump said “ultimately” the tariffs are paid for “largely by China.” Fox News host Chris Wallace challenged that statement, saying, “But, Larry, that isn't true. 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.”
“Fair enough. In fact, both sides will pay. Both sides will pay in these things,” Kudlow agreed.
“But the tariff on goods coming into the country, the Chinese aren't paying,” Wallace said.
“No, but the Chinese will suffer GDP losses and so forth with respect to a diminishing export market and goods that they may need for their own--” Kudlow said.
“I understand that, but the president says that China, it pays the tariffs, they may suffer consequences, but it's U.S. businesses and U.S. consumers who pay, correct?” Wallace asked.
“Yes, to some extent. Yes, I don't disagree with that. Again, both sides will suffer on this,” Kudlow said.
When asked how long it would take for Trump to make good on his threat to impose 25 percent tariffs on the rest of Chinese imports, which is $300 billion worth of Chinese goods, Kudlow said, “We've already launched that process up on the USTR Website. What happens in this if I get this right, we will have announcements, we will have hearings, we will have public comments. How long does it take? I don't know, it could be a couple of months, thereabouts”
“A couple of months, because there have been talk three or four weeks. You're saying it could take longer,” Wallace said.
“Yes. Among other things, there has to be -- as I understand it, a 60=day public commentary or something like that. So, you know, call it a couple months, call it three months, I don't know. [U.S. Trade Representative] Ambassador [Robert] Lighthizer can detail that, but that will take some time, and then of course, the president is going to have to make the final decision on that,” Kudlow said.