President Trump defended his China trade policies Tuesday, posting a series of tweets defending his tariffs as beneficial to the U.S. economy. He argued both that the tariffs gave the United States important leverage and that they are lucrative on their own.
The comments follow a market sell-off Monday as the U.S. and Beijing dug in on their respective positions.
“China buys MUCH less from us than we buy from them, by almost 500 Billion Dollars, so we are in a fantastic position. Make your product at home in the USA and there is no Tariff. You can also buy from a non-Tariffed country instead of China,” Trump said Tuesday.
China buys MUCH less from us than we buy from them, by almost 500 Billion Dollars, so we are in a fantastic position. Make your product at home in the USA and there is no Tariff. You can also buy from a non-Tariffed country instead of China. Many companies are leaving China…..
— Donald J. Trump (@realDonaldTrump) May 14, 2019
“We can make a deal with China tomorrow, before their companies start leaving so as not to lose USA business, but the last time we were close they wanted to renegotiate the deal. No way! We are in a much better position now than any deal we could have made,” he said.
Trump added that the Federal Reserve could help out by dropping rates: “China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a ‘match,’ it would be game over, we win! In any event, China wants a deal!”
The White House on Monday formally began the process to add 25% tariffs on $300 billion worth of Chinese goods, on top of the existing 25% tariffs on $250 billion worth of goods. Beijing said that it would hike tariffs on $60 billion in U.S. goods to as high as 25% in retaliation.
Despite the increases, both sides have said they plan to continue the trade negotiations. Trump said Monday that he will meet with Chinese President Xi Jinping in Japan at the G-20 Summit in late June. China said Tuesday talks would continue but was vaguer on the details.
“My understanding is that China and the United States have agreed to continue pursuing relevant discussions. As for how they are pursued, I think that hinges upon further consultations between the two sides,” Chinese Foreign Ministry spokesman Geng Shuang told reporters Tuesday.
Trump conceded that the agriculture industry was likely to feel the brunt of the latest increase but promised Tuesday that he’ll make it up to them. “Hopefully China will do us the honor of continuing to buy our great farm product, the best, but if not your Country will be making up the difference based on a very high China buy … This money will come from the massive Tariffs being paid to the United States for allowing China, and others, to do business with us.”
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, a critic of many of Trump’s tariff policies, expressed frustration over the situation but put the blame on Beijing. “Raising tariffs will hurt both US & China economies + more importantly will hurt US farmers/consumers/businesses Enough is enough China needs to negotiate seriously & quit moving the goalpost Enforceable trade deal needed for certainty.”
