Trump defends ordering US firms to leave China

PRESIDENT Donald Trump is pushing back against those questioning whether he has the authority to order American companies to cut trade ties with China.

Trump on Friday morning, Aug. 23, 2019, tweeted that he “hereby ordered” U.S. companies to seek alternatives to doing business in China.

At midnight, as he was flying to France, he tweeted again, saying that those who “don’t have a clue” about presidential powers should look at the Emergency Economic Powers Act of 1977. The law says the president is authorized “to regulate international commerce after declaring a national emergency” if there is an “extraordinary threat” to the nation.

The Consumer Technology Association, a trade group that runs the annual Consumer Electronics Show, said in a statement Friday that Donald Trump’s tariffs are the worst economic mistake since the 1930 Smoot-Hawley Act raised tariffs just as the world was sliding into the Great Depression.

Trump said products coming from China slated to be hit with a 10 percent tariff on Sept. 1 will now face a 15 percent tariff.

Trump also said goods and products currently being taxed at 25 percent will be taxed at 30 percent starting Oct. 1.

Trump’s comments come after China said it would pursue new tariffs of five percent and 10 percent on $75 billion of U.S. products.

The tariffs would take place in two steps, just as the U.S. said it would do earlier this month in imposing 10 percent tariffs on $300 billion of Chinese goods.

TThe Dow Jones Industrial Average dropped 623 points Friday as companies and business groups urged the two countries to get to the negotiating table.

Association of Global Automakers chief executive officer John Bozella said when China imposed tariffs last year, U.S. vehicle exports to the country were cut in half.

It is unrealistic for American retailers to move out of the world’s second largest economy.

NATIONAL RETAIL FEDERATION SENIOR VICE PRESIDENT OF GOVERNMENT RELATIONS DAVID FRENCH