{"id":1571514,"date":"2025-09-12T03:00:00","date_gmt":"2025-09-12T07:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1571514"},"modified":"2025-09-12T03:00:00","modified_gmt":"2025-09-12T07:00:00","slug":"lutnick-beijing-eating-majority-of-chinas-52-average-tariffs","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/lutnick-beijing-eating-majority-of-chinas-52-average-tariffs\/1571514\/","title":{"rendered":"Lutnick: Beijing “Eating” Majority Of China’s 52% Average Tariffs"},"content":{"rendered":"

Lutnick: Beijing “Eating” Majority Of China’s 52% Average Tariffs<\/span><\/p>\n

\n

Commerce Secretary, Howard Lutnick, said that foreign governments have been bearing the brunt of U.S. tariffs over 15 percent, with China paying the lion\u2019s share.\u00a0<\/p>\n

\u201cChina is paying an average tariff of 52 percent. But the government of China is eating most of it. So while that\u2019s a high average when you count in China, the government of China is covering most of that cost,\u201d Lutnick said<\/a> on CNBC\u2019s \u201cSquawk on the Street\u201d on Sept. 11.<\/p>\n<\/p>\n

As Epoch Times notes, Lutnick said that most countries aren\u2019t facing tariffs above 15% and that when they do, the foreign governments step in to keep their businesses afloat while they negotiate better terms.<\/p>\n

\u201cThe model is clear: 10% tariffs or less are paid by the manufacturers, the distributors, the businesses,\u201d he said. \u201cThe consumer doesn\u2019t pay. The consumer doesn\u2019t pay because the seller doesn\u2019t want to raise prices, because if they could, they would, but they don\u2019t want to sell less. So they eat it.\u201d<\/p>\n

If the duties are between 10 and 15%, the distributor and manufacturers share the cost at about a 60-40 split, he said, resulting in about a 2 percent price increase with tariffs of 15%.<\/p>\n

\u201cAnd above 15%, no one can handle that … unless the government covers it. So what you saw in cars, when you had 25%, before Europe made their deal and Japan made their deal, the government of South Korea and Japan and Europe covered it, because they didn\u2019t want to hurt their employment,\u201d Lutnick said.<\/p>\n

This confirms our own previous reporting, focusing primarily on Japanese auto exports where virtually all these tariff costs have been borne by domestic carmakers.<\/p>\n

https:\/\/twitter.com\/zerohedge\/status\/1940496511978136038?ref_src=twsrc%\u2026<\/a><\/p>\n

\u201cYou\u2019ve got to remember, these are big things, and our president is playing the big hand for America, and some of the governments play the little hand for their countries\u2019 good,\u201d Lutnick said, adding that this is why citizens have not seen price increases as a result of the tariffs.<\/p>\n

\u201cOur average tariff rate is not that high. Most of the world is less than 15 percent.\u201d<\/p>\n

Lutnick said Trump\u2019s tariff strategy has changed the way other countries meet the United States at the table, pointing to the Japan and EU deals as an example. While Europe has agreed to U.S. car imports with no tariffs, Japan culturally has no market for U.S. cars, Lutnick said. Japan has instead agreed to invest $550 billion in American projects of Trump\u2019s choice during his term in office, effectively to \u201cbuy down their tariff\u201d at no cost to its own taxpayers, he said.<\/p>\n

\u201cTariffs are bringing in $40 billion a month, bringing down our deficit,\u201d Lutnick said. \u201cIt\u2019s going to grow to $700 billion a year, and with growth of our economy the president says it\u2019s going to get to a trillion.\u201d<\/p>\n

He predicted a construction boom in the first quarter of next year, with new factory building worth roughly $10 trillion and gross domestic product growth even before the factories open.<\/p>\n

\u201cYou\u2019re going to see factories get built in America at a scale you have never seen before,\u201d he said.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 09\/11\/2025 – 23:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/lutnick-beijing-eating-majority-chinas-52-average-tariffs<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Lutnick: Beijing “Eating” Majority Of China’s 52% Average Tariffs Commerce Secretary, Howard Lutnick, said that foreign governments have been bearing the brunt of U.S. tariffs…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1571514","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6AP0","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1571514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1571514"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1571514\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1571514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1571514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1571514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}