Trump Doubles Down on Tariffs Against China, Claims Economic Advantage
Former President Donald Trump has reiterated his firm stance on tariffs imposed on China, stating he will not remove them as a bargaining chip to initiate negotiations. In an interview recorded Friday at his Mar-a-Lago estate with Kristen Welker of NBC’s "Meet The Press," Trump defended his tariff policy, asserting that it is significantly weakening the Chinese economy and forcing companies to invest in the United States.
Trump painted a picture of a struggling Chinese economy, claiming that factories are closing, and unemployment is soaring. "China’s getting killed right now," he stated. "They’re getting absolutely destroyed. Their factories are closing. Their unemployment is going through the roof." Despite this purported economic hardship, Trump insisted that he wasn’t actively seeking to harm China. He claimed his objective was to prevent China from using trade surpluses to expand its military capabilities. "I’m not looking to do that to China now. At the same time, I’m not looking to have China make hundreds of billions of dollars and build more ships and more Army tanks and more airplanes."
Welker directly questioned Trump on whether he would consider lifting the tariffs to incentivize China to engage in negotiations. "You’re not dropping the tariffs against China to get them to the negotiating table?" she asked. Trump unequivocally responded, "No."
He did, however, suggest that tariffs would be reduced at some point in the future, seemingly acknowledging their potential long-term negative impact on trade relations. "At some point, I’m going to lower them, because otherwise you could never do business with them," he conceded, adding, "And they want to do business very much like their economy is really doing badly. Their economy is collapsing."
Trump dismissed concerns about the tariffs’ potential impact on small businesses, arguing that their benefit to larger industries, particularly the automotive sector, outweighed any negative consequences. He predicted that car companies would "make a fortune" due to his tariff policies. He also didn’t rule out the possibility of making some tariffs permanent, citing the potential for significant investment in the U.S. economy. He estimated that the United States could expect $9 trillion worth of new investments since he took office, largely fueled by companies relocating or expanding their operations within the country to avoid the tariffs.
Trump highlighted the commitments made by various companies to invest in the United States, specifically mentioning Apple and other tech companies, as well as automobile manufacturers like Toyota, Honda, General Motors, and Stellantis. He stated that these companies had pledged billions of dollars to bring their plants to the United States, creating jobs and boosting the American economy.
The context of Trump’s remarks includes recent reports that China is seeking to de-escalate trade tensions. It’s been reported that the Chinese government has compiled a list of American products that would be exempt from its retaliatory 125% tariffs on U.S. goods. Beijing has already granted exemptions for certain U.S. products, including pharmaceuticals, microchips, and aircraft engines. Additionally, reports have surfaced about a Chinese official seeking talks with Trump on the issue of fentanyl ingredients amid the ongoing trade war.
The interview also touched upon the possibility of a recession in the near term. While Trump acknowledged that "anything can happen," he downplayed concerns, stating that he believed the U.S. economy was in a "transition period" and predicted a future of unprecedented economic prosperity.
Welker directly asked, "Is it okay in the short term to have a recession?" Trump responded, "Look, yeah. . . . Everything’s okay," before claiming that the U.S. economy is in a "transition period" and "we’re going to do fantastically." When pressed further on whether he was worried about a recession, Trump responded flatly, "No." He added, "But I think we’re going to have the greatest economy in the history of our country. I think we’re going to have the greatest economic boom in history."
Trump’s unwavering stance on tariffs, coupled with his optimistic outlook on the U.S. economy, suggests a continuation of his confrontational trade policy with China. This approach contrasts with some voices advocating for a more conciliatory approach to resolve trade disputes and foster economic cooperation. While acknowledging the potential for future tariff reductions, Trump’s immediate focus appears to be leveraging the perceived economic pressure on China to secure favorable trade terms and encourage investment in the United States.
The potential consequences of this policy remain a subject of debate. While Trump argues that it benefits American businesses and workers, critics worry about the potential for increased costs for consumers, disruptions to global supply chains, and retaliatory measures from China that could harm U.S. exports. The long-term impact of Trump’s trade policies on both the U.S. and Chinese economies will depend on a variety of factors, including the resilience of businesses to adapt to changing trade conditions, the willingness of both countries to engage in constructive negotiations, and the overall state of the global economy.
