Are tariffs a tax cut?

It depends, apparently, on who’s giving the answer.

Tariffs are a tax imposed on imports. It follows, then, that imports necessarily become more expensive in the country that levies the tariffs.

White House Press Secretary Karoline Leavitt, during a briefing Tuesday, said this:

“Tariffs are a tax cut for the American people.”

Nearly all economists say tariffs are actually a tax hike. That’s because the additional cost of tariffs will, to a large degree, be passed on to consumers through higher prices.

Backed by that assessment, PolitiFact has rated Leavitt’s statement as false. “The statement that tariffs are a tax cut is nonsensical,” libertarian economist Daniel Mitchell told the fact-checking website.

The White House was asked by PolitiFact for input as well, and spokesman Kush Desai responded:

“In his first term, President Trump implemented his America First economic agenda of tariffs, tax cuts, deregulation, and the unleashing of American energy that resulted in historic job, wage, and investment growth with no inflation. In his second term, President Trump will again implement an America First agenda to reindustrialize the United States and revitalize working class prosperity.”

Whether specific tariffs are good or bad is an ongoing debate. Directly, though, it’s hard to see how tariffs are a tax cut. Indirectly, interpret as you will.

In a discussion Tuesday with the country’s top CEOs at the Business Roundtable, President Trump said tariffs are just a part of his economic strategy.

“The biggest win is if (investors) move into our country and produce jobs. That’s a bigger win than the tariffs themselves, but the tariffs are going to be throwing off a lot of money to this country,” he said.

In his Jan. 20 inaugural address, the president put it this way: “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”

That seems to ignore the likelihood that consumers — at least in the short term — will pay higher prices for the products subject to tariffs. Trump now acknowledges the possibility of temporary pain, but assures it will be worth it.

Leavitt’s statement about tariffs being a tax cut came during an exchange with Associated Press journalist Josh Boak, who pushed the press secretary on whether tariffs are a tax hike on American consumers.

Leavitt eventually answered, “I think it’s insulting that you’re trying to test my knowledge of economics and the decision that this president has made. I now regret giving a question to the Associated Press.”

No word yet on whether Boak regrets raising the question.