Steve Moore: Stock market overreacted to Trump’s tariff threat

Channel: Fox Business
Published: 05/07/2019 09:55 PM

Heritage Foundation economist Steve Moore says the stock market overreacted to President Trump’s threat to raise tariffs on Chinese goods. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. H...

Well so far, average americans haven't really felt the brunt of the terrorists currently in place on chinese imports, but if a deal isn't reached by friday and the president makes good and its threat to bump up terrorists to 25 %, these costs will largely be passed down To american businesses and consumers, let's bring heritage foundation steve war into the picture. To talk about this steve, is it ...
worth it well david? I think that the market overreacted today from some of those through these verbal wars now between trump and the beijing leaders. I do think in the end of the day they are going to get a deal. I mean they're, not that power of power accordingto. My sources at the white house trump gets frustrated that beijing has not bent, but you know i'm paid me a skeptical that 25 % tariff is going to come through. I mean you look trumped, you know when he engages in the deal making and negotiating. He uses leverage, he thinks this. This tariff is the leverage, but i don't think he's gon na pull the trigger. I don't like there if you don't like tariffs, the president doesn't like tariffs, but i don't like surgery either, but sometimes you got to have a surgical operation to make. You feel better, i'm glad the president is pushing back on china. That'S bullied us now for a generation cheated like crazystolen intellectual property. Don'T you think it's about stinking time that we stuck it in our face and said you know we're as mad as you know what and we're not gon na.

Take it anymore. Well, i i do agree with you. I think that this has been an abusive trade relationship, governor you're. Exactly right, i remember when you ran for president. You were one of the first. You were the canary on the coal mine on this issue, and so i think that it is time to get got me too. I mean look you're right. You have to get very tough with china. I'Ve talked with some of our trade negotiators. They get very frustrated that oneday china, that says they'll do one thing and the next day they do the just the opposite, but look trump also likes a bull market and stocks. He likes a strong economy and i think that there are some cooler heads in the white house who understand that a trade war would be very negative for china, but it would help the hurt the us as well - hey steve. It'S carol roth, you know, i am a recovering investment banker and i love having tough negotiations as much as the next person, but i don't understand the tactic here.

It seems to me that ip is really at the crux of the issue on both sides. Certainly, we knowfrom the us side and we're sick of china stealing our ip, but china is very focused on ip as well they've been filing all types of patents and trying to protect ip. Why aren't we taking the stance that you know what, if you're not going to enforce our ip laws, we're not going to do the same to you we're going to go with our allies across the world? It takes a hard stand on ip, which won't affect american consumers and won't affect small businesses, but could be equally as effective. Well, look that the stealing by china you're simply out of control right now i mean you were sorry. You have a situation where china isstealing 300 or 400 billion dollars a year. We can't continue with that kind of relationship. Now the problem is china, keep saying they're gon na stop stealing, but they don't do it now. If i understand you correctly, you're saying, if they're not gon na honor, our ip, we shouldn't honor theirs. Is that point well, the problem with that is the problem. Is they don't invent anything in china? I mean everything's in been in silicon valley and in austin, texas and boston massachusetts i mean the chinese. I don't think their patents are anywhere near as valuable. I mean one one-hundredth is valuable as the patents we have, because we invent things.

China is a copycat technology. That'S bythe way: i don't buy this idea for one minute the china is going to overtake us technology clee there david they are a centrally planned economy where the government's directing the investment capital show me anywhere anytime that that model has worked. I think maybe that's a little bit short-sighted when you're talking about china and the near future and given all of their investments, maybe you can think of how they got to this point. They stole it. We all agree that okay, fine, so let's agree on that, but if we're talking long term look at the investments that china has been doing all across the globe, all the military as well. Therefore, we cannot just saydefiantly that united states has all the cards in their hand. I think that is too simplistic, though shoei i don't get you you can answer me. The other question, though, is what about the agricultural sector that are already feeling the tariffs. You often already see shifts towards brazil when buying soybeans. This could have a major long-term effect on that sector yeah. But you know i'll go back to what we said. What the governor was saying.

I mean this is the fight of our lifetime. Right, i mean we cannot back down to china. I want to have this fight now, not 10 or 15 years from now our farmers. You know you know the governor's froman agricultural state. They understand what the stakes are here. People, i think, are willing to take some short-term pain for the long-term gain of china. You know growing up. Look i'm not saying that china doesn't invent anything and they are. They are very active in all sorts of things like artificial intelligence and robotics and things i'm just saying. I will place my money on silicon valley to come up with the big new things, not necessarily the chinese steve john layfield here. Is there a chance here that we're doing long-term structural damage to our country christine mentions christina mentioned the fact? The farmers we losing sleeping contracts not for this year or losing those forever tobrazil china is helping build out their soybean infrastructure exports so that they can circumvent? Wasn'T buying from the united states also, the swift banking system is being challenged in europe and in china, as is the dollar as a reserve currency with the petrol wand, which was introduced last march. Is there a chance here that we are doing long-term structural damage to our country if this trade war continues well, look trade worse of bad things? We know that, and so i don't want a trade war, but i think the worst thing of all for us is to back down and trump has to get a good deal with with the beijing government and he has tobe very strong.

I think he has the country behind him. Even the democrats are starting to sound like mike huckabee, aha, china now, and so i think trump is fighting the good fight. I think we have to come away with a victory. I think it has to involve china buy more of our products and pretend and honoring our intellectual property. I don't buy for one second, that anything's gon na replace the dollar as the world currency. The dollar is so strong right now i just don't i don't that for 25 years. I just don't believe it especially now when we have a pretty good, solid dollar everybody why every in the world wants dollars. They wantto invest here, because we cut taxes. We cut regulation, america is their country right now, hey steve, very quickly, a procedural question. It looks like we were close to some kind of a deal when, at the last minute the chinese pulled out yeah in terms of the the way we were gon na verify their changes in rules and regulations which we need to see. It looks now like the entire trading, whether it's kudlow and navarro minuchin light. I said they're all in agreement that unless they get back on course, these tariffs are gon na kick in.

Am i right? It looks like it, but you know the verification is the most important thing david in the dealyou can't trust these people. They don't take to keep their words. So you know if they won't agree to verification, then i think that you may see these tariffs, but in the long run, i'm bullish on getting a good trade deal done with china and when that happens, the markets gon na go up by 2,000 points. So it's gon na happen. Well, i'm bullish on steve, moore and always have been, and always will be. So it's great to see it. Please come back and see you soon, steve all right! Thanks david.

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