The Chinese government said on Sunday that the door to resolving the impasse was always open, but that it would not yield on matters of principle, according to state news media. There are no winners in a trade war, The People’s Daily newspaper said in a commentary carried by the official Xinhua News Agency on Sunday. China does not want to fight, the newspaper said, but it is not afraid to do so.
While economists differ on how much the trade war will crimp economic growth, most agree that the cost of tariffs is passed on to consumers in the form of higher prices on everything, including lighting fixtures and art supplies. Among the items covered by the administration’s latest increase in tariffs to 25 percent: computers, toilet paper, dog collars, Christmas tree lights and mattress supports.
“Trump is dragging a dangerous misconception into a critical moment in his standoff with the Chinese,” Chad Bown, an expert on trade at the Peterson Institute for International Economics, said last week. “And American businesses and consumers stand to pay the price.”
Mr. Kudlow held open the prospect of progress: He said that Mr. Trump was likely to meet President Xi Jinping of China at the Group of 20 summit meeting next month in Osaka, Japan.
It was hard to tell if Mr. Trump’s hard line was merely a negotiating tactic. But as the 2020 election campaign begins, he is showing clear signs that he views standing firm as a winning political strategy.
At a rally last week in Florida, he criticized the current Democratic front-runner, former Vice President Joseph R. Biden Jr., for being weak in his dealings with foreign leaders, and ridiculed the prospect of Pete Buttigieg, the 37-year-old mayor of South Bend, Ind., negotiating with the Chinese president.
Former aides have also warned Mr. Trump against signing a watered-down agreement, saying that it could become fodder for Democrats, particularly progressives like Senator Bernie Sanders, independent of Vermont, who has staked out a position on China trade as hawkish as that of Mr. Trump.
Source Article from https://www.nytimes.com/2019/05/12/us/politics/larry-kudlow-trump-trade.html
Comments