Trump may have made it more difficult for the US to 'win' its trade war with China


Washington. President Trump says the US would raise tariffs from ten percent to twenty five percent on more than two hundred billion dollars worth of Chinese goods and increase would take affect at twelve. Oh one tomorrow morning unless. Settlement can be reached the threat following charges that Beijing has been trying to backpedal and essentially renegotiate earlier greets. But in the meeting with reporters at the White House earlier today, President Trump also indicated that he received what he described as a beautiful letter from the Chinese president Xi Jinping and would probably speak to him as negotiations continue more from the White House, the vice premiers coming here today, we were getting very close to a deal, then they started to renegotiate the deal. We can't have that. We can't have that. So our country can take one hundred twenty billion dollars a year and tariffs paid for mostly by China, by the way, not by a lot of people try and steer it in a different direction really paid out of his faith for by largely by China. I'm businesses will pour back into our country. So instead of making the product it'll be the old-fashioned way the way we used to do we made our own product. And I think things are going along pretty well. But a large group delegation headed by one of the most respected men. Highest officials of China will be coming in today. They started five o'clock, and they'll see what they can do. But our alternative is is an excellent one. It's an alternative. I've spoken about for years. We'll take in well over one hundred billion dollars a year, we never took in ten cents from China nut ten cents, and it'll be a I think it'll be a very strong day, frankly, but we'll see it was their idea to come back. Just wrote me a beautiful letter just received it and I'll probably speak to him by phone. But look we have two great alternates. Our country is doing fantastically. Well, our numbers at three point two. Don't forget three point to the first quarter is always by far the worst quarter, or at least almost always you look back over the years. First quarter is always weekend. We had three point two GDP. Our unemployment numbers of the best in the history of our country. And we're doing well companies are really doing well, even in Ohio the great state of Ohio yesterday General Motors at my verse stronger jink to put it mildly, very stronger. I wasn't even nice about it. But I appreciate what they did. They sold the the beautiful plant Lordstown they sell that beautiful plant to very very good company that's gonna make electric trucks and that work because I was the only thing they could say about our whole economy Lordstown, they kept saying Lord style Lordstown. And when you had all these great companies spending, billions and billions of dollars coming into our country. They couldn't talk about it. That only mention the one plant. That was a GM plant from a very long time ago. And now, we have a great company going and going to make electric trucks, very appropriate. Those remarks by the president earlier today at the White House and joining us on the phone here in Washington as Bob Davis. He is senior editor for the Wall Street Journal, and can you walk us through specifically the issues on the table between the United States and China? Well, you know, now there's one big issue one big issue. And that is whether the US will go ahead and raise tariffs on Chinese goods, two hundred dollars of Chinese goods. From ten percent to twenty five percent. That is the issue that is dwarfed all the substantive issues that have come before it from China's point of view. Tariffs go into effect. They'll they'll be forced to retaliate if they do that. We're down further down a rabbit hole. This could really create a trade war between the two leading economies of the world. We've been on the edge of a trade war. This is like in trade terms, like high noon, I mean, you know, this is bad as as fraud moment as you get in trade negotiations. So how did they resolve this? Well, one or two ways the Chinese come with concessions that the US considers to be significant enough to either hold off tariffs or to just put tariffs in place for a period of time while they work out work out a deal and get back to this substantive issues that divide in Asians, or you know, it doesn't work out. I mean that the tax go in and we're in for a long period of. Very. Problematic economic news and get these are tariffs that obviously American consumers would see and feel every day the president often mentions the stock market and we've seen some wild moves over the last couple of days because of the uncertainties so where does that put the president? Well, president is a guy who believes in tariffs he calls himself tariff. Man, I think that is actually the way he thinks about things. I think if the market I think the markets had Sumed has had many other people that we were on the road to a deal if it becomes if the talks fell apart and tariffs are put in place in look like me and place for for a long period of time. I would imagine Mark through react very negatively. And then we'll take a look and see how much same power. The president has the face of falling stock market. We're talking with Bob Davis senior editor for the Wall Street Journal does this potentially have any impact on inflation. Possibly probably not. I mean, you know, so we're talking about. Increasing tariffs on two hundred billion dollars of goods from ten percent to twenty five percent. The types of goods that we're talking about on for the most part aren't the sort of things you seem WalMart. I mean, they're they tend to be electron of components mechanical parts, you know, things that go into other things. So yeah, I mean go up, but it'll be hard on a machinery on a piece of machinery to tell. You know, how much of that is from a tariff on the other hand if the president the president is increases threats today, and he's said that they're starting the process of. Of imposing tariffs on three hundred and twenty five billion dollars worth of goods. That's so far haven't been subject to tariffs. And those are the things that Americans buy all the time in WalMart and other stores like iphones and cell phones and clothing there, you, you know, I don't know if it's a big enough impact to to affect the consumer price index overall, but you'll see it. I mean, if you're consumer you'll notice it if the price of an iphone goes up twenty percent because of a tariff, that's not something you're gonna miss and two key players on the US side. The Treasury Secretary Steve Mnuchin part of these negotiations into the evening, and Robert lighthizer who is a presence top trade negotiator. What can you tell us about these two individuals -pointment as it might be in terms of trade with China? Well, I mean, they very different outlooks and represent very different constituencies. So lighthizer trade Representative is is a longtime China Hawke who largely wanted the USC our job. So he kid finally get a chance to take on China. And try to write what he felt were the wrong that China was committing economically. He pushes his heart as he can harder. I would say the president for a tough deal that would fundamentally change Chinese economic policies. The Treasury Secretary has a different portfolio. I mean, he is portfolio is keeping the US economy humming along in the global economy, you know, few problems as it can have. So he's been pushing much more for a deal. He is kind of a dove in the, you know, in this bifurcated world while visors hawk one thing to note is that the Chinese Trayvon boy a guy named Lou her is meeting today having dinner tonight only with lighthizer not with Mnuchin, which is different than the way. It's been in the

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