President Trump doesn't seem to understand that imposing tariffs on Chinese goods is a tax on U.S. Consumers and is choking U.S. businesses. The tariffs are already causing a wave of farm and business bankruptcies. Increasing tariffs and escalating the trade war with China will cost hundreds of thousands of jobs.
By James DiGeorgia
Before leaving for the G-20 summit in Buenos Aires, Argentina President Donald Trump dangled the prospect of “doing something” with China when he meets one on one for dinner with President Xi Jinping. Once again raising hopes that the two leaders may be able to negotiate a ceasefire in their trade war before tariffs imposed by the United States jump from 10% to 25%.
U.S. and Chinese officials have been working for the last few weeks trying to negotiate a trade deal the two leaders can agree to after they meet one on one Saturday.
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Sources familiar with the negotiations have been focused on a “truce” in which the United States would delay the scheduled increase in tariffs on China in exchange for Chinese concessions. The truce would be intended as a framework for a final deal to be negotiated by U.S. officials such as Commerce Secretary Wilbur Ross and Secretary of the Treasury Steve Mnuchin.
There has been a good deal of speculation that Liu He, Xi’s top economic adviser might come to the United States in mid-December should there be a positive outcome coming out of the two Presidents meeting in Buenos Aires.
Despite the potential of easing tension during the G-20 meeting Trump still making threats against the Chinese and bragging that he still has the upper hand just before getting on Airforce One for his trip to the G-20 meeting …
“I think we’re very close to doing something with China, but I don’t know that I want to do it, because what we have right now is billions and billions of dollars coming into the United States in the form of tariffs or taxes,”
“I don’t know, but I will tell you that I think China wants to make a deal,” he continued. “I’m open to making a deal, but frankly, I like the deal we have right now.”
Trump is clearly not concerned about the escalation in farm bankruptcies and dire warnings from U.S. car and high technology manufacturers that are warning that the trade war with China could do tremendous damage to the U.S. and World economy if the two nations don’t settle their trade differences.
Perhaps Larry Kudlow could get some courage and explain the simple economics that is at play. The President doesn’t seem to understand that the billions in tariffs he says is a -- “good deal” is, in fact, massive taxation on U.S. consumers and causing long-term damages to U.S. businesses trying to navigate the trade war.