On Thursday, President Trump instructed the United States Trade Representative (USTR) to begin the bureaucratic process needed to apply $100 billion in tariffs on China.
However, this move is simply in response to an escalating battle over trade between the two nations. On Wednesday, China introduced a new $50 billion tax on certain US imports, in response to the increasingly combative rhetoric from the Trump Administration.
Announcing the new $100 tariff, Trump explained, “In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate.”
As with past trade restrictions promoted by the Trump Administration, conservative voices in Congress, and the policy world, are warning of the harmful economic consequences to the US from a full-on trade war with China.
“What Republicans and President Trump did in December was create this enormous, pro-growth tailwind going into this November’s elections, and I think that they’ve needlessly created this headwind that could erase all of those gains,” stated Andy Roth, the conservative Club for Growth’s Vice President of Govt. Affairs.
“This is a huge unforced error,” he concluded.
On Thursday, on a trip to West Virginia, the President Trump celebrated the economic growth emerging from the GOP’s tax cut earlier this year. He even singled out moderate Democratic Senator, Joe Manchin’s (D-WVA) for voting against the historic tax reform bill.
“The Democrats have a problem. I mean if you look at your senator, he voted against [the tax bill],” President Donald Trump said.
Just hours before President Donald Trump made the announcement, Larry Kudlow – the economic adviser tried to tone down the fears that the clash between the two countries could hurt the economy of United States.
“Technically, both countries have just proposed tariffs. Nothing’s been enacted,” Larry Kudlow explained to confused reporters at a White House press event. “I think that’s an important point. Nothing around the corner. There’s going to be a big discussion about it.”
On Tuesday, The White House produced a comprehensive list of Chinese imports, which could be subject to a new 25% tariff, including certain furniture, electronics, and shoes.
However, despite the combative rhetoric, and tariff back-and-forth between the US and China, Trump insists that this is not a trade war. “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!” President Donald Trump wrote.
Kevin Brady (Republican-Texas), the Committee Chairman of House Ways and Means announced on Thursday that a hearing in the following week will be held by the panel on the outcome of the increase in tariffs on the economy.
“As we continue to work with the Administration to build off the success of President Trump’s tax cuts and regulatory reform, I am committed to listening to U.S. job creators every step of the way to make sure we make all appropriate adjustments to avoid unintended negative consequences to the U.S. economy,” said Brady.