Directly contradicting Trump, White House economic adviser Larry Kudlow Admits US Will Pay for China Tariffs.
- White House economic adviser Larry Kudlow on Sunday acknowledged that the Chinese do not directly pay tariffs on goods coming into the U.S., contradicting President Donald Trump’s claims that China will pay for tariffs imposed by the U.S.
- Kudlow said that “both sides will suffer on this,” but argued that China will suffer significant GDP losses as export markets are hit. The blow to U.S. GDP, on the other hand, won’t be substantial since the economy is “in terrific shape,” he said.
Kudlow is right about point one, wrong on point two.
The US economy is not in great shape unless you consider economic bubbles as a great shape.
Goldman Sachs Same Story
Goldman Sachs says the same thing: The cost of Trump’s tariffs has fallen ‘entirely’ on US businesses and households.
- Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.
- The bank said in a note that the trade war’s impact on U.S. consumer prices is now higher than previously expected, partly because Chinese exporters have not lowered their prices to better compete in the US market
- “One might have expected that Chinese exporters of tariff-affected goods would have to lower their prices somewhat to compete in the US market, sharing in the cost of the tariffs,” Goldman said.
Right Where We Want To Be
That set of Tweets is from Sunday. It's a repeat of economic idiocy from Friday and Saturday.
Not Economic News
Trump is either a blatant liar or an economic nitwit.
His Tweets prove it.
This is not economic news. It's political news repeated over and over so many times it's embarrassing.
Kudlow contradicted his boss. That's the real story.
Play the video in the Tweet.
Kudlow tried to duck pointed questions but got trapped. He simply could not stomach telling blatant lies unlike Treasury Secretary Steven Mnuchin.
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Mike "Mish" Shedlock