Donald Trump defended his call for tariffs on Chinese goods Thursday night, saying in the Republican presidential debate that they were needed to counteract the Chinese government’s manipulation of its currency.
Asked if he would stand by his statement, reported by the New York Times, that he would back a 45 percent tariff on Chinese imports, Trump suggested that he favored tariffs, although not necessarily that high.
“China is ripping us on trade, they’re devaluing their currency and they’re killing our companies,” the real estate magnate said.
“We have great power, economic power over China,” he added, explaining that if we were to use that power, the 45 percent would be the tariff that would level the playing field, based on China’s devaluations. Such a tariff could be used as a threat, he suggested.
“I’m not saying we do it, but if they don’t start treating us fairly and stop devaluing and let their currency rise so that our companies can compete and we don’t lose all of these million jobs that we’re losing, I would certainly start taxing goods that come in from China,” he concluded.
Sen. Marco Rubio stepped in to object, arguing that such a tariff would be passed on to U.S. consumers.
“China doesn’t pay the tariff. The buyer pays the tariff,” the Florida senator said.
“The best thing we can do to protect ourselves from China economically is to make our economy stronger, which means reversing course from all the damage Barack Obama is doing,” Rubio argued, citing tax reform and repealing Obamacare as possibilities.
Trump dismissed that approach.
“It takes too long,” he responded. “They’re sucking us dry.”
Jeb Bush also chimed in with an objection to Trump, warning that “there’ll be retaliation” if the U.S. imposes tariffs on Chinese goods. He mentioned that soybean sales in Iowa or sales of Boeing aircraft made in South Carolina to China would be harmed.
“This would be devastating for our economy,” he said. “We need someone with a steady hand.”
