White House assistant for trade and manufacturing Peter Navarro on Friday agreed with President Donald Trump that Americans are not paying for the China tariffs, saying he is “absolutely correct.”

Navarro said on Fox Business Network’s “Mornings with Maria” that China is paying for the tariffs “in three ways.”

“China is paying for the tariffs in three ways,” he told host Maria Bartiromo. “They are cutting their prices, slashing their prices. They had just crushed their currency. It’s down by almost 12% now.

Navarro continued, “But the biggest part of the pain China is experiencing, and I don’t think they understood this was going to happen, is that the supply chain is fleeing China right now. And that is a long-term trend. I’m not even sure a deal is going to stop that, unless it’s a deal that they agree to soon because people are leaving China. Business people are leaving China because of a lot of things: high wages, the pollution, but also the fact that they don’t want their technology taken by the Chinese government.”

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