Does China Pay Tariffs? - FactCheck.org
tulc(thought this was interesting)President Donald Trump is fond of saying that China is paying billions of dollars to the U.S. as a result of the increased tariffs he has imposed on imports of Chinese goods. Not true. The tariffs are taxes paid by U.S. importers in the form of customs duties, and to some extent by U.S. consumers in the form of higher prices.
Trump said it again most recently on Feb. 25, in remarks to state governors who were meeting in Washington, D.C.
Trump, Feb. 25: Now, China is paying us, right now, billions and billions of dollars of tariffs a month. Every month, billions of dollars. I love it. Personally, I love it. But they’re paying billions of dollars. And it’s hurting them; it’s not good for them.
The “billions” part is true — just barely. Most recent figures show monthly collections of duties on imports from China nearly tripled after the first round of Trump’s tariffs went into effect July 6, rising from an estimated $1.24 billion in June to $3.65 billion in October. Estimated collections were $3.30 billion in November, the most recent month for which the U.S. Census Bureau has released estimates, which may vary somewhat from actual collections. (Figures for December are delayed, due to the partial government shutdown.)
But those increased tariff duties aren’t paid by China, or even by Chinese companies. Import duties are paid by U.S. importers, either directly or more commonly through customs brokers. The government’s “Guide for Commercial Importers” advises those who use brokers to make out a separate check “payable to ‘U.S. Customs and Border Protection’ for those customs charges, which the broker will then deliver to CBP.”
