Trump threatens to increase tariffs on China ahead of trade talks

Channel: Fox Business
Published: 11 hours ago

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Former White House Press Secretary Sean Spicer and 'The Coming Collapse of China' author Gordon Chang on U.S. trade negotiations with China. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street....



Transcript
Big news of the morning is the trade tensions are flaring up between the us and china. President trump is threatening to increase tariffs on 200 billion dollars worth of chinese goods casting doubt on optimism for a trade deal beijing in the face of all of this is now weighing whether or not to pull out of the trade meeting that was in place scheduled For this week in the united states, the news i ...
sparking a sell-off. Take a look down 474 points lower on the dow industrials s & p, futures down 48 and the nasdaq futures down 162 points. Now this all comes on the heels of treasury secretary steven venetians trip to beijing. Last week now beforehe went on the trip he sat down with me and he said that the enforcement mechanism was close to being agreed upon. Watch us what would be the most ideal situation in this next round of talks? Well, marie, i think the good news is: we've made a lot of progress. I think we've we've been talking about this for two years, starting with president trump and president xi at mar-a-lago. Talking about a desire to have a rebalance trading relationship and that's something president xi agreed to over the last four months - ambassador, allied hyzer and a large interagency team has done an extraordinary job. I think we've made more progress than ever before this. This is areal agreement. If we get to a completed agreement, it will have real enforcement provisions, there's still some important issues, so we still have more work to do. I think we spent a lot of time.

We expect to have the meetings this week. The vice premier will come back with his team the following week. I think there's a strong desire from both sides to see if we can wrap this up or or move on. So have you gotten? The enforcement mechanism done is that agreed upon the enforcement mechanism is close to done so i would say: that's one of the areas we've made a lot of progress. It needs a little bit of fine-tuning, but iwould say we have a fundamental understanding in that area. This interview was one week ago then, after that interview he left for beijing joining us right now to talk more about that is the former press secretary and president trump america. First action, senior advisor and spokesperson sean spicer and back with us here in the studio. Is the author of the coming collapse of china, gordon chang, shan gordon great, to see both? Thank you so much for being here, jenna good! Let me kick this off with you, your reaction to steven venusian a week ago. Something obviously broke down this past week in beijing. Yeah clearly, and i think reality is just hitting both sides. Butyou know, there's been a lot of cheerleading on the part of administration officials and you can sort of understand why. But there are some pretty things, but things that are really obvious of political considerations, especially in beijing, but also in washington.

Pushing the two sides apart and part of it is the chinese economy. You have to understand what's going on there, because that really affects their motivation right now. At the same time, sean spicer you've seen the president do dealings before and he likes to make threats. Is this a threat that the president is trying to affect change, get the chinese to the table to agree to what the us wants? Of course it isabsolutely i mean, but nothing is closed with the chinese until it's actually closed and then you've got to do with what secretary of anusha was talking about in terms of the enforcement mechanism. So the devil is going to be in the detail, but for decades china has been subsidizing its industries. It'S been engaging in predatory trade practices, especially with respect to intellectual property and the illegitimate transfer of wealth that has gone on from our human capital to them. So for the president to stand up to them and to make it very clear that we're going to fight continue to fight is what i think is important too often, you've seen these, you know pattycake typemeetings, where everybody walks out with agreements about long term goals and Strategies, the president understands that you've got to stop talking, you start doing, and so i i think, being tough right now is what's needed, because until the chinese come here and figure out how to close that gap, then we don't have a deal. Sean matura, shell and gordon. You could potentially weigh on this to the the nafta 2. 0 us mca. It still hasn't been ratified by the house. So obviously china knows that there's a political risk here that even if a deal is done, it couldn't be ratified.

Are they slow playing recognizing that there's a sort of political fallout? They don't want togive the win to the democrats. Don'T want to give the win to the president so to you sean is that likely, inter you know, in the mixer and the negotiations that china just doesn't knows that there's a potential win for the president that the house will never let happen. No, i think, because there's a difference in terms of what needs to be ratified, so you can make a trade deal that's outside of around the periphery, as opposed to us mca which needs to go through congress and that's separate. But i mean that may have some type of calculus and they're thinking, but i think gordon's right in terms of i think the chinese are moreconcerned with our own economy than they are about our political situation, but both sides right now as they get close. The the political realities creep in in terms of what it means for their own constituencies and how this will be played is what matters. China obviously plays the long game and all these kind of talks they're not thinking about the next election because they don't have to, and so i think, they're thinking of how will this play with their people and how will it affect their economy and the same thing With us, you've got a lot on the line when it comes to what the president's going to get with respect to china, though domesticallyif the president got them to bend on whether it was intellectual property or non tariff and tariff barriers. I think our congress, regardless of party, would have to applaud the president and approve anything he did that's a little bit different than mexico, where we've got the democrats are always going to have labor and environmental issues that suddenly creep up at the last minute to get A deal over the line - sean, it's daga mcdowell, but this is part of president trump's communications strategy, which again, you know very well where he will say something. There may be outrageous tweet, something harsh, but the reality on the ground is a little bit different than the verbiage coming outof, the president or the language that he uses - and i pointed this on the the tariff issue and the fight with china that the us trade Representative might have to give us industry a pretty decent notice on any change in tariffs. So this wouldn't be something that would happen: instantaneously 10 % to 25 % on two hundred billion dollars in goods on friday, and then also they want to move slowly because they do fear that people who negotiate these trade deals of a legal challenge. What happens? Well? Yeah, but i think that the bigger issue goes back to maria's, first question, which is, if you are the chinese and you're negotiating with this president, unlike previousadministrations, regardless of the mechanism and the timing that'll take to implement it, you know that he means business. That'S not! That'S not what they faced in the past and i think whether or not it takes 30 or 60 or 90 days to implement what he ultimately decides. If he says we're gon na raise the tariff rate up to 25 percent, you know he's not kidding right.

So you may have more time and i think that's the difference in the negotiating style that brings these guys to the table and could potentially make the difference in whether or not we close a deal or don't.


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