President Donald Trump repeatedly makes misleading and false claims about trade.
Some of the top falsehoods portray trade as a zero-sum game and seek to minimize perceived costs.
Trump says China pays US tariffs, for example, but there is a strong consensus that businesses and consumers bear the costs.
The Trump administration has raised valid concerns in its economic war with China, including what officials have found to be a system that allows intellectual-property theft and unfair state subsidies to companies.
Yet when it comes to trade, President Donald Trump has been repeating falsehoods left and right. Here are some of the most popular ones.
SEE ALSO: The Trump administration is preparing tariffs on $300 billion worth of Chinese goods. Here are all the products that will get hit.
China pays US tariffs
Trump repeats this false claim often, saying that foreign exporters pay tariffs levied by the US.
“Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go,” he wrote on Twitter in November. “If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!”
However, study after study has found that businesses and consumers bear the cost. Tariffs cost Americans about $1.4 billion per month in 2018, according to a recent paper by economists at Columbia, Princeton, and the Federal Reserve Bank of New York.
Trade imbalances signal a weak economy
Trump views the trade balance as a zero-sum scorecard of sorts, arguing that a deficit means the US is losing to China. As a candidate in 2016, he called the US-China trade deficit “the greatest theft in the history of the world.”
The figure is driven by many factors, however, including foreign-exchange rates, the …read more
Source:: Business Insider