Kevin Duffy on who pays for tariffs

All taxes are taxes on production.  Ultimately the consumer pays the tariffs, but that doesn't measure the true costs.  If there were 100% tariffs on Chinese EVs (there are, they were quadrupled under the Biden administration), no Chinese EVs will be sold in the U.S.  This harms American consumers without raising a penny for the government.  

Poverty requires no explanation.  Just go live on a desert island and try to make everything yourself.  Wealth creation requires specialization (getting the highest value for your time) and trading the fruits of your labor with others.  Trade, as long as it's peaceful and voluntary, is win-win.  Both sides benefit, otherwise the exchange wouldn't take place.  The more people we can trade with and the more they produce, the wealthier we become. 

In other words, tariffs are a tax on wealth creation. 

Economists disagree on a lot of things, but the case for free trade is not one of them.

~ Kevin Duffy, Facebook post, February 2, 2025