Yes, Donald Trump’s China tariffs are raising billions. But here’s why China isn’t paying
- Chinese goods have been hit with US$8 billion in tariffs, but it’s US importers who are footing the bill
- US businesses paid US$2.8 billion in new Trump tariffs in October alone, The Trade Partnership economic consultancy estimates
US President Donald Trump is right to say that his tariffs are generating billions of dollars for the US. But China and other countries aren’t paying them as he’s suggested.
According to data from US Customs and Border Protection, more than US$13 billion in duties imposed by the Trump administration were assessed on imported goods as of December 18.
Actual collections could lag and be lower because of refunds and other factors, but Treasury Department reports show receipts from all customs duties have risen sharply since the tariffs took effect.
While Trump has suggested on Twitter and in public comments that tariffs are somehow being charged to or paid by China and other countries, trade economists say that’s generally misleading. US importers of record are responsible for the duties, and ultimately US businesses and consumers could pay through higher costs, they say.
Trump is “suggesting this is bringing in lots of new revenue and all of the burden is falling on the Chinese,” said Phil Levy, senior fellow on the global economy at the Chicago Council on Global Affairs and a former senior economist for trade for President George W. Bush’s Council of Economic Advisers. “I think that’s mostly false.”