The subsidization of foreign exports enables Americans to tap into the income bases of foreign countries and impose a tax on foreigners every time a subsidized product is imported into this country. Communist China, for example, would never consider allowing the U.S. government to tax its one billion citizens directly; nevertheless, that is what China permits indirectly through the subsidies it gives its exporting industries, for example, textiles. The tax is realized in terms of higher prices and lower real incomes in China and lower prices and higher real incomes in the United States.
This is a quote from Richard McKenzie, Competing Visions: The Political Conflict over America's Economic Future, 1985.
I highlight this part because this is the nicest statement of the issue I've ever seen. Milton and Rose Friedman come close with their statement that such subsidies are a form of foreign aid--to us. Still, I like the McKenzie statement even more.