Trump staunch on China trade policy

President doesn’t fear recession, is thinking about payroll tax cuts

Washington — President Donald Trump acknowledged Tuesday his aggressive China trade policies may mean economic pain for Americans but insisted they’re needed for more important long-term benefits. He insisted he’s not fearing a recession but is nonetheless considering new tax cuts to promote growth.

Asked if his trade war with China could tip the country into recession, Trump brushed off the idea as “irrelevant” and said it was imperative to “take China on.”

“It’s about time, whether it’s good for our country or bad for our country short-term,” he said.

Paraphrasing a reporter’s question, Trump said, “Your statement about, ‘Oh, will we fall into a recession for two months?’ OK? The fact is, somebody had to take China on.”

The president indicated that he had no choice but to impose the tariffs that have been a drag on U.S. manufacturers, financial markets and, by some measures, American consumers.

He was clear he didn’t think the nation is at risk of a recession, and that a boom was possible if the Federal Reserve would slash its benchmark interest rate. “We’re very far from a recession,” Trump said. “In fact, if the Fed would do its job, I think we’d have a tremendous spurt of growth, a tremendous spurt.”

Yet he also said he is considering a temporary payroll tax cut and indexing to inflation the federal taxes on profits made on investments — moves designed to stimulate faster growth. He downplayed any idea that these thoughts indicate a weakening economy , saying, “I’m looking at that all the time anyway.”

Asked about his remarks, White House spokesman Judd Deere said “the president does not believe we are headed for a recession. The economy is strong because of his policies.”

Trump rattled the stock and bond markets this month when he announced plans to put a 10 percent tax on $300 billion worth of Chinese imports. The market reaction suggested a recession might be on the horizon and led Trump to delay some of the tariffs that were slated to begin in September, though 25 percent tariffs are already in place for $250 million in other Chinese goods. In private, he and his advisers have shown concern that a broader slowdown if not an outright recession could arrive just as he is seeking re-election based on his economic record.

“We’re very far from a recession. In fact, if the Fed would do its job, I think we’d have a tremendous spurt of growth, a tremendous spurt.” PRESIDENT DONALD TRUMP