Arthur J. Villasanta – Fourth Estate Contributor
Washington, DC, United States (4E) – President Donald Trump is open to meeting with Chinese president Xi Jinping to end the increasingly ruinous trade war between the U.S. and China — but likely on U.S. terms.
This possibility was revealed by Larry Kudlow, Director of the National Economic Council and one of the architects of the trade war. Trump launched this ill-advised trade war to punish China for its theft of U.S intellectual property and to slash the huge U.S. trade deficit with that country.
Kudlow said Trump stands ready to talk with Xi as early as this month at the United Nations General Assembly or later this year at the Group of 20 meeting in Argentina. Economists said Kudlow’s comments suggest the U.S. wants a deal with China to end Trump’s trade war before it worsens further.
The trade war will certainly worsen since Trump will hit China with $200 billion in new tariffs within the month. Trump has boasted he will tax the remainder of China’s exports to the U.S. worth $267 billion within the year. Should the U.S. push go forward with these threats, it will mean it will have taxed all of China’s exports to the country.
U.S. businesses, however, are warning that Trump’s infantile trade war will damage the U.S. economy and harm American consumers. Also last Friday, Apple Inc. said in a letter the government’s proposed tariffs on $200 billion cover a wide range of products used in its U.S. operations.
The Retail Industry Leaders Association (RILA) said that levying duties on all Chinese purchases will be disastrous. It will hit “every aspect of our American lifestyle — so the clothes that we put on our back, the food that we eat, the cars that we drive, the shoes that we wear,” said Hun Quach, RILA vice president of international trade.
RILA also said the new tariffs will harm American students. Tariffs will increase the cost of school supplies like bookbags, binders, and glue. This is going to hurt American families (not China) during the back to school season that begins this month (September).
Based in Virginia, RILA promotes consumer choice and economic freedom through public policy and industry operational excellence.
The Footwear Distributors and Retailers of America was even more infuriated than RILA at the trade war with China. Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, described the tariff’s impact as: “In one word, disaster. Punishing my children for the crimes of my neighbors seems like a ridiculous thing for all of us to think it would be effective.”
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