So these tariffs are not paid by the Chinese people, companies, or government. Rather, tariffs are paid by U.S. business (e.g., higher input costs such as aluminum and steel) and U.S. consumers (e.g., higher prices on products at WalMart). The retaliatory tariffs from China on U.S. agricultural products reduced demand. Demand for things like soybeans reduced so much that crops are left to rot in the field. Then the government promises to pay farmers billions which apparently adds up to most of the tariffs collected by the government. Then the government shutdown causes concern about the ability to even write the check to the farmers promised payment for not farming.

If you follow those facts, you could conclude that U.S. businesses and consumers are paying farmers to be idle. Doesn’t make much sense to me. Then again, I don’t understand much of the “policy” coming from this administration. If you read the article below, you will see that policy makers from the Reagan and Bush administrations don’t see the benefit of this trade war either.

-Dr. Moore

Trump’s Tariffs Are Producing Billions, But China Isn’t Paying
https://www.bloomberg.com/news/articles/2019-01-17/trump-s-tariffs-are-producing-billions-but-china-isn-t-paying