China slaps tariffs on $75 billion of US products

China slaps tariffs on $75 billion of US products


>>Sandra: BREAKING NEWS IN THE TRADE WAR WITH CHINA, LEARNING THEY WILL RAISE TARIFFS ON $75 BILLION OF U.S. PRODUCTS. JOINING US NOW IS WHITE HOUSE TRADE ADVISOR PETER NAVARRO. THANK YOU FOR COMING ON THE PROGRAM THIS MORNING. OBVIOUSLY THE WHITE HOUSE WANTS TO PUT OUT A MESSAGE RESPONDING TO THE TARIFFS, WHAT IS THAT?>>THE PRESIDENT HAS DONE A REMARKABLE JOB PUTTING THIS COUNTRY BEHIND HIM ON THE CHINA ISSUE THE LAST FEW YEARS BY EDUCATING THE PEOPLE ABOUT CHINA’S ACTS OF AGGRESSION, THE FORCE TECHNOLOGY TRANSFER, KILLING AMERICANS WITH CHINA MADE FENTANYL. CHINA CONTINUES ACTIONS LIKE TODAY SIMPLY REINFORCES THE TOUGH STAND THAT THIS PRESIDENT TAKES. FROM A MARKET POINT OF VIEW, IT’S NOTHING THAT THEY ARE WELL SIGNALING, REALLY IMPORTANT TODAY AND TOMORROW, IF JAY POWELL AND THE FEDERAL RESERVE ASSURES AMERICA THAT HE HAS THEIR BACK, IT WILL FINISH UP THREE OR 400 POINTS. THE EUROPEAN CENTRAL BANK FOLLOWS THROUGH ON THE PROMISE TO LOWER INTEREST RATES AND ENGAGE IN EASING AND THAT’S GREAT FOR AMERICA BECAUSE A STRONGER EUROPE WILL MEAN MORE EXPORTS SOLD TO EUROPE AND MORE GROWTH FOR AMERICA, THERE ARE SOME THINGS THAT ARE GOING TO BE REALLY IMPORTANT.>>Sandra: TWO BIG THINGS I WANT TO BRING YOUR AUDIENCE ALONG WITH YOU. WE ARE 14 MINUTES INTO TRADING, THE DOW IS OFF 91 POINTS, NOT A HUGE LAUGH. NOT A HUGE REACTION TO THE NEWS BUT I WANTED TO POINT OUT AND GET SOME CLARITY ON THIS BECAUSE THEY UNDERSTAND THAT YOU LEARNED OF THIS SLAP BACK FROM CHINA THIS MORNING ABOUT THE SAME TIME THAT WE ALL DID ALTHOUGH YOU WERE ANTICIPATING IT, IS THAT FAIR?>>THE CHINESE SITE HAD CLEARLY SIGNALED TO US THAT THEY WOULD RETALIATE IN SOME WAY. THE PROBLEM THAT THEY HAVE IS WE HAVE A FAR MORE BULLETS IN ARGONNE THAN THEY DO. THEY TELL US CLOSE TO $6 BILLION IN EXPORTS AND OURS IS A LITTLE OVER 100.>>Sandra: WHAT DOES THAT SAY ABOUT HOW FAR THIS BATTLE, THIS TRADE WAR COULD GO?>>THIS IS NOT A TRADE WAR. IT’S WHEN TWO COUNTRIES ARE FIGHTING OVER LOWERING THEIR TARIFFS. BUT WHAT WE ARE FIGHTING ABOUT IS TO HAVE THEM STOP STEALING YOUR INTELLECTUAL, TAKING OUR TECH TECHNOLOGY, MANIPULATING CURRENCY AND HAVING THEIR STATE OWNED ENTERPRISES RAMPANT AND AROUND THE WORLD.>>Sandra: THAT IS COMPLETELY FAIR AND YOU’RE GETTING CREDIT FROM BOTH SIDES OF THE AISLE FOR THAT. REPUBLICANS, DEMOCRATS, A TOUGH STANCE ON CHINA, MANY SAYING IT IS TIME BUT EVEN THE FARMERS WHO SAY WE BACK THE PRESIDENT ON THIS PUSH ON CHINA ARE TALKING ABOUT THE PAYMENT THEY ARE FEELING AND IN THIS NEWS, THIS ANNOUNCEMENT FROM CHINA, IT’S AN EXTRA 5% ON SOYBEAN IMPORTS, IT’S AN EXTRA 10% TAX ON THE IMPORTS OF U.S. PORK. THEY MET PRESIDENT HAS THE BACKS OF THE AMERICAN FARMERS, THEY WILL NOT BE HURT. WE HAVE A LARGE PROGRAM TO MAKE FARMERS HOLE, AND WE ARE USING SOME OF THE MONEY COLLECTING THE TARIFFS AND IT GOES RIGHT TO THE FARM BELT. THE BIG PICTURE HERE IN TERMS OF MACROECONOMIC EFFECTS IT IS WE’VE HAD TARIFFS IN PLACE FOR OVER A YEAR, WE KNOW THAT CHINA IS BEARING THE BURDEN OF THOSE TARIFFS BY HAVING TO CUT THEIR PRICES, CUT THE VALUE OF THE CURRENCY, SEEING THEIR SUPPLY CHAIN HEMORRHAGE OUT OF CHINA COMING BACK HERE GOING TO VIETNAM OTHER PLACES AND WE HAVE SEEN NO IMPACT ON CONSUMERS. SO THE PEOPLE IN THIS COUNTRY ARE BEHIND PRESIDENT DONALD TRUMP WITH HIS TOUGH STAND ON CHINA.>>Sandra: NOW HE MAKES HIS WAY TO FRANCE TONIGHT, THE G7 MEETING WITH THE PRESIDENT’S MESSAGE THERE.>>THE MESSAGE IS SIMPLY THAT THE TRUMP ECONOMY IS BASED ON A GREAT MODEL. TAX CUTS, DEREGULATION, UNLEASHING THE ENERGY SECTOR AND HAVING FAIR AND RECIPROCAL TRADE AND THE PRESIDENT WANTS TO SHOW SOME LEADERSHIP THERE IN TERMS OF MOVING EUROPE TOWARDS THAT PARADIGM AFTER THE G7 WAS CREATED TO BRING TOGETHER THE LARGE ECONOMY TO TALK ABOUT HOW TO GROW. SOME OF THE INDIVIDUAL THINGS AND I LOVE WATCHING THIS PRESIDENT INTERACT WITH THESE LEADERS, BORIS JOHNSON, GOING TO BE IMPORTANT BY OCTOBER 30TH THAT WE HAVE A RESOLUTION OF BREXIT. THAT MEANS WE’LL BE ABLE TO MOVE SWIFTLY TOWARDS TRYING TO GET A GOOD TRADE DEAL WITH THE U.K. THE GERMAN ECONOMY, IT’LL BE INTERESTING TO HEAR WHAT THE GERMANS HAVE TO SAY ABOUT THAT.>>Sandra: LET ME FIRE OFF A COUPLE OF THINGS, WILL THERE BE A TAX CUT BEFORE THE ELECTION, LARRY KUDLOW SEEMED TO HINT THAT ONE.>>FROM THE MOMENT THE FIRST TAX CUT WAS DONE, WE’VE ALWAYS ENVISIONED TAX CUT YOU POINT OUT NOT AS A MANEUVER WORRIED ABOUT SLOWDOWNS, BUT SIMPLY TO GET THE TAX CODE RIGHT, THE CORPORATE TAX STILL HIGHER THAN WE LIKE, SO I DON’T KNOW WHETHER WE WILL HAVE A TAX CUT BEFORE THEN. IT WILL BE VERY DIFFICULT WITH THIS CONGRESS.>>Sandra: IT’S BEING CONSIDERED THOUGH.>>MY POINT IS THERE’S NOTHING NEW ABOUT THAT. WE HAVE ALWAYS TALKED ABOUT 2.0 BUT IT SHOULDN’T BE INTERPRETED AS A SIGN THAT THE ECONOMY IS STRUGGLING. WE HAVE A VERY STRONG ECONOMY. I HAVE FIVE SECONDS LEFT.>>FED CHAIRMAN DOES THE RIGHT THING INSTEAD OF DRAGGING US DOWN 2% LIKE THE FED IS DOING SO LET’S GET IT DONE, JAY POWELL, HAVE AMERICANS BACK AND IT WILL ALL BE GOOD.>>Sandra: WE WILL HEAR FROM

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