Tuesday, November 27, 2018

Trump Issues New China Tariff Threat

President Donald Trump has issued a new threat to slap tariffs on $267 billion of Chinese imports, just days before a meeting with Chinese president Xi Jinping at the G20 Summit on December 1 in Buenos Aires.

During an interview with The Wall Street Journal on Monday, Trump said. “If we don’t make a deal, then I’m going to put the $267 billion additional on.”

Trump added, "I happen to be a tariff person because I’m a smart person, OK?"

Of course, no one knows if Trump is serious or whether this is Trump bluster ahead of the meeting.

White House chief economic adviser Larry Kudlow said last week that talks between the Chinese and US trade teams “will come to a head at the G20”. Separately, Kudlow said in an interview with Fox Business News that Trump “believes that China would like to have a deal” and “very detailed communications” are taking place at all levels of government.

That said, tariffs are simply a bad idea that always results in shrinking trade, distorting markets and lowering the standard of living for each country involved. Unilateral free trade is the best option. But it is unlikely this strategy will be adopted by the economically ignorant, intellectually light-weight President Trump.

Though I am told by those close to Kudlow that he privately supports free trade.


1 comment:

  1. So Kudlow is careerist buffoon who will gladly sellout for a buck