Promising tariffs on metals, Trump says trade wars are ‘ easy to win’
Skeptics warn that higher prices could harm U. S.
WASHINGTON – President Trump declared Friday that “trade wars” with other countries would be “good, and easy to win,” a day after his pledge to put tariffs on steel and aluminum drew threats of retaliation from other countries and tanked the American stock market.
“When a country ( USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump tweeted. “Example, when we are down $ 100 billion with a certain country and they get cute, don’t trade anymore- we win big. It’s easy!”
Trump ventured into a discussion about trade taxes, claiming in another tweet that some countries tax American products at up to 50%, while the United States charges nothing.
“Not fair or smart,” Trump tweeted. “We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $ 800 Billion Trade Deficit- have no choice!”
He did not explain what he meant by “reciprocal taxes.”
China, Canada and the European Union have criticized Trump’s proposed tariffs and suggested retaliation against U. S. products that could range from Kentucky bourbon to Florida orange juice, raising prices for those and other products.
Trump’s tweets came a day after he announced he would place tariffs of 25% on steel imports and 10% on aluminum imports.
Trump did not disclose details, such as which countries might be affected or whether there would be any exemptions, but he said paperwork would be signed next week.
The Dow Jones industrial average fell more than 400 points in the wake of Trump’s comments.
Chinese officials were in Washington on Thursday as Trump made his tariff comments. The White House said various administration officials met with the Chinese about the announcement. The group included Treasury Secretary Steven Mnuchin and economic adviser Gary Cohn, who tried to persuade Trump to hold off on the tariffs.
Financial analysts questioned the wisdom of declaring a trade war that could lead to price hikes for goods and services.
They said Trump’s rhetoric alienates allies needed for economic growth, as well as national security.
“Trade Wars = Good ... Something I never thought I’d hear a US president say,” tweeted Ian Bremmer, president of the Eurasia Group, a political risk consulting firm.
Countries sounded alarms about Trump trade policies.
“The foundations of our trade policy system are under threat,” said Mark Rutte, prime minister of The Netherlands.
Skeptics, including some Republicans, said trading partners and rivals would slap counter- tariffs on U. S. products and raise costs worldwide. “Trade wars are never won,” Sen. Ben Sasse, R- Neb., said Friday.
“Trade Wars = Good ... Something I never thought I’d hear a US president say.” Tweet from Ian Bremmer Eurasia Group