Will consumers be affected by Trump's tariffs on China?

Channel: Fox Business
Published: 7 hours ago

Description
Former Trump Campaign senior trade adviser Curtis Ellis on how Americans will be affected by President Trump's China tariffs. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered ...



Transcript
Well, the us trade representative's office has filed the paperwork to formally raise tariffs on chinese imports, but the white house put out some positive news this morning and that led to a market pop, listen, look. We'Ve got an indication that they want to make a deal. Our teams are in continued negotiations, they're going to sit down tomorrow and we'll see what happens from there. Let'S bring i ...
former trump campaign trade and jobs advisor curtis ellis curtis, good to see you so so far. The china trade fight hasn't really affected. Most americans haven't felt it, but will that change friday? If the terrorists kick in the new tariffs? Well, i'd say: americans have felt it we'reseeing, the 13th straight month of more job openings and people to fill them. You said because of the traitor, absolutely president trump, the candidate trump said he would put in place a program of tax reform, trade reform, regulatory reform and energy reform. That would make this the best place on earth to live, work, invest and do business, and it is working well. What about trying to tariffs are moving out of china that are moving out of china and as they move closer to america, even the feed stocks and the subcomponents that go into the finished products are more likely to consumers. You know furniture prices are going up, luggage is costing more televisions, etc. Etcdoesn'T that hurt in sumer. Don'T they eventually pay the tariffs? I think the fact of the matter is inflation is relatively flat.

That'S what all the evidence says and, in fact, there's plenty of body of economic evidence that shows that incomes due to outsourcing incomes fall even faster than the putative bit more than offsetting any putative benefit of lower consumer prices from cheap imports that completely we are seeing Evidence shows we now have multiple studies about the tariffs that the trump administration put into effect number one. They were born that 99 percent by the american consumers number two. They cost the american taxpayer more than nine thousand dollars per job saved number three american businessesacross, multiple manufacturing industries have said that the tax being put on them and the costs associated with these tariffs are leading them to close down their operations in the us and move Them to mexico and to china polaris the studio company announced that today go ahead and you have your evidence. I have mine. There is plenty of evidence to show that when americans don't have any money, they don't care how cheap the consumer goods are. The goal here is to bring jobs back to america, bring back to the western hemisphere, and we know the factors pushing the beijing party line in washington, so maybe doing that you're talking carrots are a tax on american consumerswe. Keep repeating that austin says not does not make it true that doesn't matter is the tariff duty is placed on the first price that is paid to a factory in china, not on the wholesale price, not on the price paid to middlemen in hong kong. So if anybody wants to eat the 25 % duty, it'll be that middleman in hong kong, who doubles her trebles the price that he pays to a factory in china. So that's gon na be the first place. Income farmers around the united states are in up in arms and outrage over these terrorists, because farm income is and going bankrupt, can't skycar they're going bankrupt. There is no sense in which tariffsare good for the us economy that the economy's doing the economy was doing. The first of all, let's get things straight tariff - is a sales tax, twenty five percent tax on autos, twenty five percent tax and anything else that is a tax and ultimately the consumer bears it too.

In terms of the booming economy, that's deregulation and tax cuts. We had a booming economy in 1929. If you want to go back in history and we put in the smoot-hawley tariff and guess what happened, the world trading system fell apart and we went into a down spin. So, let's what? Let'S keep the things that are worth and in terms of china, trade abuses, yeah they'vebeen engaged in them, but go after the perpetrators, like that, cfo of huawei who's gon na end up in jail. Rightly so that's right, there's plenty of perpetrate going hale. There are plenty of perpetrators that can go in jail. I don't want to get into a timeline on smoot-hawley, but the crash came before smooth hall. He went into effect of smoke, clear congress, smoot-hawley started to clear congress and they made it work of 1929 when the markets anticipate the future and when those horrific tariffs started to bring up their ugly head in the fall of 29. That'S when the market, cracked, well somehow china's done great with the highest tariffs on earth, so tariffs are apoison that always kills economic growth. Tell that to the chinese and because i just got to say something in in accordance with what curtis is saying. This is the 13th. This is not just a short-term boom that we're in this is the 13th month that we've had straight 13 months in a row where we have more jobs than job seekers.

I mean that's an extraordinary record. We are on a this. Is nice sort of a temporary boom? This is like this is a long hold on guys. We can't eurasian. We have to hear one person at a time, so we can hear what you're saying go ahead. Austin, okay, we've had a hundred and twenty-twomonths. I believe a private-sector job growth, the longest on record. That'S fabulous! Can one of you explain to me what is going through the president's head when you have a great jobs number and then you turn around and say we're gon na reignite trade war with china right? It'S very simple loss. If you want an answer. Hold on yeah, ask a question of you: what's positive, do you want an answer to your question you wanted answer. This is the answer. Yeah question he's gon na go to the market in a second.

I'M answering your question in austin he's a negotiator. He took that as a point of strength to bring to the negotiations. Lord knows, if we'regoing to have these these raisin sanctions tomorrow or friday. They may not happen if they come to some deal, but he figured he'd argue from a point of strength. That'S what you do. He got great numbers and he turned the screws, because china has never opened its market as it promised to. China'S never agreed never lived up to any of the commitments and agree to, and china has reneged on the commitments it made in the negotiations so far. What'S he supposed to do sit there and lick their boots? The way the obama administration's way every previous administration's foot? Well, let me explain it from the chinese side how about that? It'S okay, so we're gonnacall around the asia pacific and around dc. This is what happens so, as i mentioned to a lot of people. China is not a one-man dictatorship. You also have to get consensus across the aisle as well and there's a very strong, very powerful politburo in place and not, although apparently read that 150 page report and that 50 150 page offer so when they actually went through the details, i think a little them A lot of them sort of the hardliners we're a bit shocked at some of the agreements, and you know they balked at save the state-owned enterprises and the subsidies ending those which have been the backbone of the chinese economy throughout the twodecades of growth. Also, how do you verify technology force, technology transfer, ip theft and the like, and also by the way, keeping those enforcement mechanisms in place which loses china a lot of face, so the us can say we will keep the tariffs on until you promise and keep your Promises, i think that was very soon other words, in other words, the politburo and the other people were pushing back to these agreements.

They didn't like what they saw in papers. They right that's exactly what happened and again you're, not selling it to one person. You have to get more than just mushy jinping on board.


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