In its Currents newsletter, the National Marine Manufacturers Association reported today that President Trump was optimistic that the United States can reach a trade deal with China.
Bloomberg News reported that President Trump on Monday “expressed optimism the US will be able to reach a deal with China that diffuses trade tensions.” Trump said his Administration will “probably” come to an agreement with China
Earlier Monday, USA Today reported the President tweeted that US-China trade is “stupid trade.” Wrote the President, “When a car is sent to the United States from China, there is a Tariff to be paid of 2 ½ percent. When a car is sent to China from the United States, there is a Tariff to be paid of 25 percent. Does that sound like free or fair trade? No, it sounds like STUPID TRADE – going on for years!”
A deal with China could potentially eliminate Trump’s proposed 10 percent tariff on aluminum stocks imported from China, but probably not the duties on aluminum sheet because of the International Trade Commission’s investigation of possible dumping and unfair subsidization of aluminum imports from China.
Appearing on CNN’s Out Front, National Economic Council Director Larry Kudlow reportedly said, “China has had unfair and illegal trading practices for two decades or longer and particularly in the technology area – forced technology give ups, unlawful transfers of intellectual power.”
He added, “Prior administrations would not do anything with China. And Trump is out there saying, ‘Wait a minute. We are going to unveil this and unmask this. If you negotiate with us, we may not need the tariffs,’ but Trump may use tariffs and I want to make that clear. He is in the right.”