On a recent episode of Fox Business Network’s "Kudlow," Stephen Miran, the Chair of the White House Council of Economic Advisers, shared his views on the impact of tariffs on exporters. He believes that exporters will bear a larger share of the tariff costs than many may expect.
During the discussion, host Larry Kudlow pointed out that he and former adviser Kevin Hassett have long thought that exporters, particularly from countries like China, would absorb about half of the tariff costs. Miran, however, argued that the reality is likely to be different. He stated that exporters are often inflexible in their operations, while the U.S. has more options. This flexibility allows American businesses to shift production to domestic sources or to import from other countries.
Miran explained that countries that rely heavily on exporting to the U.S. have fewer alternatives. As a result, they will ultimately bear the burden of the tariffs. He mentioned that this could happen through changes in exchange rates or by lowering their selling prices. In either case, he emphasized that these exporters will end up paying the price for the tariffs in the long run.
This conversation highlights the ongoing debate about the effects of tariffs on international trade and the economy. Many experts continue to analyze how these trade policies impact both U.S. consumers and foreign producers. As the situation evolves, it remains to be seen how exporters will adjust to these new economic pressures.