Trump says US ‘Where we want to be’ on China trade talksBusiness | 13 May 2019 5:19 pm
President Donald Trump weighed in on the state of trade negotiations with China, saying the U.S. was “right where we want to be” - namely, on the cusp of taking in massive tariffs from China, a view at odds with his top economic adviser.
On Twitter, the president said of China, “they LOVE ripping off America!” He also refloated a plan from Friday to redirect money generated by tariffs to buy up American agricultural products and “distribute the food to starving people” around the world - a suggestion that has already drawn skepticism.
U.S. equity futures opened more than 1 percent lower Sunday night, extending the stock market’s biggest weekly decline of the year, as the weekend ended with a stalemate between the world’s largest economies and a potential fresh round of tariffs to be announced by Washington. The yen climbed, and China’s yuan retreated.
Both United States and China will suffer in the trade war, said White House economic adviserLarry Kudlow on Sunday.
Kudlow conceded that US importers and consumers, not China, pay the tariffs imposed by Washington on imported goods. “Both sides will suffer” the impact of the tariffs, he said. “The Chinese will suffer GDP losses and so forth with respect to a diminishing export market.”
The blow to US GDP won't be substantial as the country's economy is in good shape, he said.
“This is a risk we should and can take without damaging our economy in any appreciable way,” Kudlow said.