WASHINGTON, May 13, 2019 (BSS/AFP) – US President Donald Trump on Sunday
defended his tariff policy, insisting again that China will pay billions in
duties to the US, after Trump’s economic advisor raised eyebrows by saying
both sides will suffer.
“We are right where we want to be with China,” Trump said on Twitter.
“Remember, they broke the deal with us & tried to renegotiate. We will be
taking in Tens of Billions of Dollars in Tariffs from China.”
In fact, research shows it is Americans that bear the brunt of the tariff
impact, as the levies are paid by importers and ultimately passed on at least
partially to consumers.
Trump’s comments came after economic advisor Larry Kudlow earlier Sunday
conceded that China is not the one paying the tariffs.
“Fair enough. In fact, both sides will pay. Both sides will pay in these
things,” Kudlow told “Fox News Sunday with Chris Wallace.”
Trump had accused Beijing of reneging on its commitments in trade talks
and ordered new punitive duties, which took effect Friday, on $200 billion
worth of Chinese imports, raising them to 25 percent from 10 percent.
He then ordered a tariff hike on almost all remaining imports from China,
which are worth about $300 billion, according to US Trade Representative
Robert Lighthizer.
“The Chinese will suffer GDP losses and so forth with respect to a
diminishing export market and goods that they may need,” Kudlow said, before
agreeing with Wallace that even though China may suffer consequences, US
businesses and consumers are the ones who will pay the tariffs.
“Yes, to some extent. Yes, I don’t disagree with that. Again, both sides
will suffer on this,” Kudlow said.
– No new talks scheduled –
But he also assured that because the US economy “is in a boom,” it would
not be damaged “in any appreciable way” by the tariffs.
Trump ordered the increased duties on Friday after two days of talks to
resolve the trade battle ended with no deal, although without a breakdown.
Trump began the standoff last year because of complaints about unfair
Chinese trade practices. The United States is pressing China to change its
policies on protections for intellectual property, as well as massive
subsidies for state-owned firms, and to reduce the yawning trade deficit.
Since last year the US and China had exchanged tariffs on more than $360
billion worth of two-way trade, gutting US agricultural exports to China and
weighing on both countries’ manufacturing sectors.
Kudlow told Wallace that Trump and China’s President Xi Jinping could meet
next month on the sidelines of the G20 summit to discuss their differences on
trade, but no new talks are scheduled.
While making it clear that the US was unwilling to settle, Kudlow sought
to tamp down concerns, insisting the process was ongoing.
“We need to see something much clearer and until we do, we have to keep
our tariffs on,” Kudlow said, adding: “We can’t accept any backtracking.”
As for future negotiations, while there are “no concrete, definite plans
yet,” Kudlow said China had invited Treasury Secretary Steven Mnuchin and
Lighthizer to Beijing — and higher-level discussions could be possible.
The chances of Trump and Xi meeting during the Group of 20 summit in Japan
in late June “are probably pretty good,” he said.
The G20 summit of the world’s largest advanced and emerging economies is
scheduled to take place in Osaka June 28-29.
“We have to change the trading relationship between two countries for the
benefit of the United States and its workforce and its ranchers and farmers
and so forth. We have to do this,” Kudlow said. “The relationship has been
too unbalanced.”
Earlier Saturday Trump struck a more belligerent tone, urging China that
it would be “wise for them to act now.”
“They know I am going to win… and the deal will become far worse for
them if it has to be negotiated in my second term,” Trump tweeted.
While supporters laud Trump as a tough negotiator, free-trade-minded
Republicans have warned that the tariffs could do real damage to the economy,
and many farmers — including Trump supporters — say the tariffs have hit
their bottom line.