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Trump defends China tariffs as trade war leaves allies and opponents in bind Trump defends China tariffs as trade war leaves allies and opponents in bind
(about 2 hours later)
Donald Trump again defended tariffs on Monday as his dogged, often self-contradictory pursuit of a trade war with China put allies and opponents alike in a difficult spot.Donald Trump again defended tariffs on Monday as his dogged, often self-contradictory pursuit of a trade war with China put allies and opponents alike in a difficult spot.
China hits back at US with tariffs on $60bn of productsChina hits back at US with tariffs on $60bn of products
Stocks tumbled after China said it would impose higher tariffs on US goods including frozen vegetables and liquefied natural gas, retaliating after the US raised tariffs on $200bn in Chinese imports.Stocks tumbled after China said it would impose higher tariffs on US goods including frozen vegetables and liquefied natural gas, retaliating after the US raised tariffs on $200bn in Chinese imports.
As the clash of the world’s two biggest economies raised fears of global shockwaves, the US president denied that American consumers would pay the price.As the clash of the world’s two biggest economies raised fears of global shockwaves, the US president denied that American consumers would pay the price.
“There is no reason for the US consumer to pay the tariffs, which take effect on China today,” Trump tweeted, before offering a convoluted explanation.“There is no reason for the US consumer to pay the tariffs, which take effect on China today,” Trump tweeted, before offering a convoluted explanation.
That put him at odds with his own national economic adviser, Larry Kudlow, who was asked on Fox News Sunday: “It’s US businesses and US consumers who pay, correct?”That put him at odds with his own national economic adviser, Larry Kudlow, who was asked on Fox News Sunday: “It’s US businesses and US consumers who pay, correct?”
Kudlow replied: “Yes, I don’t disagree with that.”Kudlow replied: “Yes, I don’t disagree with that.”
He also acknowledged that “both sides will suffer”.He also acknowledged that “both sides will suffer”.
Not for the first time, Trump is scrambling political allegiances. It is especially awkward for Republicans. The president’s protectionist “America First” agenda flies in the face of the party’s free market principles and threatens to hurt voters in red states.Not for the first time, Trump is scrambling political allegiances. It is especially awkward for Republicans. The president’s protectionist “America First” agenda flies in the face of the party’s free market principles and threatens to hurt voters in red states.
Farmers are one example. At a news conference organised by the campaign group Tariffs Hurt the Heartland, in response to the raising of tariffs to 25%, Brent Bible, a soybean and corn farmer in Lafayette, Indiana, said: “Our competitive advantage has always been we are a reliable source of product. This has taken that away.Farmers are one example. At a news conference organised by the campaign group Tariffs Hurt the Heartland, in response to the raising of tariffs to 25%, Brent Bible, a soybean and corn farmer in Lafayette, Indiana, said: “Our competitive advantage has always been we are a reliable source of product. This has taken that away.
“It has made it … so uncompetitive that other countries are willing to now take the risk that some of the South American countries have in terms of logistics, safety and being reliable. China and others are now willing to take that risk since we are priced so far out of the market.”“It has made it … so uncompetitive that other countries are willing to now take the risk that some of the South American countries have in terms of logistics, safety and being reliable. China and others are now willing to take that risk since we are priced so far out of the market.”
The White House has already paid out $12bn in aid for farmers hurt by Chinese tariffs against soybeans and other agricultural products, effectively wiping out financial rewards Trump claims tariffs have reaped. Trump has promised to “make it up” to farmers hurt by Chinese tariffs against soybeans and other agricultural products. Previously set at $12bn, on Monday he suggested the compensation could go even higher. “We’re going to take the highest year, the biggest purchase that China has ever made with from our farmers, which is about $15bn, and do something reciprocal to our farmers so our farmers can do well,” he told reporters at the White House.
Republicans have become accustomed to twisting themselves into unexpected positions to support Trump on all kids of issues. This is no different. The bailout programme, which has been slow to take effect due to bureaucratic hurdles, threatens to wipe out whatever financial rewards Trump claims tariffs have reaped. “We’re taking in billions of dollars of tariffs,” he insisted at the White House, dangling the prospect of yet more.
But Republicans have become accustomed to twisting themselves into unexpected positions to support Trump on all kids of issues. This is no different.
Last week the White House issued a list of those who back Trump for taking a hard line after China allegedly reneged on commitments made during months of talks. It included Senator Marco Rubio of Florida: “Not surprised #China is trying to go back on changes they had previously agreed to. For years they have had counterparts so desperate for a deal they allowed them to get away with this. [Trump] is the first to ever pose a credible threat to walk away from a bad deal”Last week the White House issued a list of those who back Trump for taking a hard line after China allegedly reneged on commitments made during months of talks. It included Senator Marco Rubio of Florida: “Not surprised #China is trying to go back on changes they had previously agreed to. For years they have had counterparts so desperate for a deal they allowed them to get away with this. [Trump] is the first to ever pose a credible threat to walk away from a bad deal”
Senator Lindsey Graham of South Carolina: “I completely support President [Trump]’s approach in trade negotiations with China. This is the last, best chance for America and the world to get China to play by the rules.”Senator Lindsey Graham of South Carolina: “I completely support President [Trump]’s approach in trade negotiations with China. This is the last, best chance for America and the world to get China to play by the rules.”
Intriguingly, the roll call also quoted Chuck Schumer, the Democratic minority leader in the Senate: “Hang tough on China, President [Trump]. Don’t back down. Strength is the only way to win with China.”Senator Sherrod Brown of Ohio, another Democrat, said: “China’s cheating has hurt American workers for far too long. Tariffs brought China to the negotiating table and now that we’re there, the president must secure real changes to level the playing field.”Intriguingly, the roll call also quoted Chuck Schumer, the Democratic minority leader in the Senate: “Hang tough on China, President [Trump]. Don’t back down. Strength is the only way to win with China.”Senator Sherrod Brown of Ohio, another Democrat, said: “China’s cheating has hurt American workers for far too long. Tariffs brought China to the negotiating table and now that we’re there, the president must secure real changes to level the playing field.”
The remarks illustrate the dilemma facing Democrats. Former vice-president Joe Biden, leading 2020 polls, was recently condemned for remarks that playing down Chinese competition. “China is going to eat our lunch?” he said. “Come on, man.” The remarks illustrate the dilemma facing Democrats. Former vice-president Joe Biden, leading 2020 polls, was recently condemned for remarks that played down Chinese competition. “China is going to eat our lunch?” he said. “Come on, man.”
Senator Bernie Sanders of Vermont, currently in second place, tweeted: “It’s wrong to pretend that China isn’t one of our major economic competitors. When we are in the White House, we will win that competition by fixing our trade policies.” Senator Bernie Sanders has pledged to label China a currency manipulator, a stand Trump vowed he would make but was talked out of by advisers. Sanders and another progressive candidate, Senator Elizabeth Warren of Massachusetts, share Trump’s distaste for Republican worship of the free market.
Sanders has pledged to label China a currency manipulator, a stand Trump vowed he would make but was talked out of by advisers. Sanders and another progressive candidate, Senator Elizabeth Warren of Massachusetts, share Trump’s distaste for Republican worship of the free market. But centrist Democrats are going on the offensive. Another 2020 contender, the Massachusetts congressman Seth Moulton, told Fox News Sunday:
But centrist Democrats are going on the offensive. Another 2020 contender, the Massachusetts congressman Seth Moulton, told Fox News Sunday: “I don’t think this administration has a strategy, they don’t have any sense of urgency, and they clearly don’t know what this means to American families.
“Wielding tariffs like a cudgel because it makes the president look tough? That only hurts American families.”“Wielding tariffs like a cudgel because it makes the president look tough? That only hurts American families.”
Apple's iPhone cost faces sharp increase as US-China trade dispute worsensApple's iPhone cost faces sharp increase as US-China trade dispute worsens
Last week’s White House news release also quoted 13 commentators and media figures endorsing its approach. Fox News host Laura Ingraham was quoted as saying: “No other president has had the guts to take on the China challenge.” The New York Post editorial board wrote: “China is up to its old tricks on trade, but it’s learning the hard way that there’s a new sheriff in town: President Trump.” Many feel Trump has hit upon an important theme – the threat posed by China and its long history of flouting rules.
Many feel Trump has hit upon an important theme – the threat posed by China and its long history of flouting rules – which may resonate with voters as a signal while the complexities of tariff tit-for-tats could get lost in background noise. A few Republican voices have warned against a prolonged dispute. Senator Rand Paul of Kentucky told ABC’s This Week on Sunday he advised the president to finalise a deal with China soon, “because the longer we’re involved in a tariff battle or a trade war, the better chance there is that we could actually enter into a recession because of it”.
Trump is aiding that process with a fog of statements and tweets claiming tariffs represent a huge transfer of wealth to the US from China. Almost every mainstream economic disagrees, while fact-checkers brand his assertion false and point out that the tariffs are paid by importers of goods from China. Trump said on Monday he plans a meeting with Chinese president Xi Jinping next month at the G-20 summit in Japan. He insisted: “We’re in a great position right now, no matter what we do. I think China wants to have it.”
A few Republican voices have expressed dissent. Senator Rand Paul of Kentucky told ABC’s This Week on Sunday he advised the president to finalise a deal with China soon, “because the longer we’re involved in a tariff battle or a trade war, the better chance there is that we could actually enter into a recession because of it”.
International tradeInternational trade
ChinaChina
US foreign policyUS foreign policy
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