The White House disputed Tuesday that it was involved a trade war with China, even after President Trump said Monday he might impose tariffs on another $200 billion worth of imports from China, after the U.S. and China are already imposing tariffs on $50 billion worth of each other’s goods.
“This is a trade dispute. Nothing more, nothing less. President Trump has a great relationship with President Xi and he will continue to work with President Xi on a wide range of issues,” White House trade policy adviser Peter Navarro told reporters. “Our view is that these actions are necessary to defend this country and that they are ultimately bullish toward America.”
He disputed that there there would be any significant harm to U.S. industries from the latest back and forth between the countries. “China has much more to lose than we do,” he said.
Navarro said the U.S. would not try to use the new tariffs to create specific pressure on certain sectors or areas of China, unlike China’s attempt to retaliate by hitting goods produced in states that are home to Republican congressional leaders.
He said the administration is set to impose a 10 percent tariff on $200 billion worth of Chinese goods, not the initial 25 percent tariff that prompted China to retaliate. The new tariffs will be done under Section 301 of the Trade Act, which covers protecting national security.
Talks with China to avoid an escalation in the trade fright fell apart, Navarro said, after the U.S. asked China to buy more U.S. goods, and China asked the U.S. to reciprocate. “That was simply a non-starter,” he said. China’s refusal to reduce the overall trade deficit between the two countries was another obstacle.
The White House will be releasing a study on Tuesday detailing China’s predatory trade practices, he said.
“President Trump is standing up for America,” Navarro said.
