NewsLocal NewsPolitiFact Wisconsin


Who is really paying for the tariffs in the trade war: Americans or China?

Posted at 7:06 PM, Aug 07, 2019
and last updated 2019-08-07 20:06:18-04

China and Wisconsin farmers seem a world apart but President Trump says there is a connection.

PolitiFact Wisconsin looks a claim by the president on tariffs and farmers.

When President Trump was in Milwaukee a few weeks ago he talked a lot of trade and tariffs.

In fact, during TMJ4's Charles Benson interview with President Trump, the president said farmers who are financially hurt by the trade war are being helped by tariffs.

"We are doing great with farmers now in a lot of ways. One way is we are giving $16 billion out of all the tariffs we're collecting. Sixteen billion dollars all comes out of the tariffs that we've gotten from China."

President Trump has increased tariffs or taxes on goods - like TV's made in China and imported to the US.

But PolitiFact Wisconsin says China is not paying the tariffs - they are passed on to American consumers.

"Tariffs are taxes on imported goods. They are paid.. not by China.. but by US importers."

So where does the 16 billion in farm aid come from for farmer hurt by trade?

PolitiFact Wisconsin says the aid comes from money borrowed by a program under the U.S. Department of Agriculture.

"Farmers will indeed get a $16 billion aid package, but Trump is wrong about where the money comes from," said Litke.

PolitiFact Wisconsin rated the president's claim -- False.