US Economy Not Harmed by President Trump’s International Trade Dust-ups
- Shayne and I expect China to align with the US’s sloution, as it cannot afford not to.
Saturday, US Treasury Secretary Steven Mnuchin said that the overall US economy has not been harmed by the trade battles set off by President Donald Trump’s get-tough policies, but some individual sectors have been hurt. He said The Trump Administration was exploring ways to help farmers and other specific industries that have been affected.
Secretary Mnuchin spoke to reporters on the sidelines of meetings of FMs and central bank Presidents from the Group of 20 nations, composed of traditional economic powers such as the United States, Japan and Germany and emerging economic powers including China, Brazil, India and Argentina.
Secretary Mnuchin said that there had not been an adverse effect on overall growth from the tariffs but that certain industries were being harmed because other countries were retaliating by targeting specific industries.
“Certain countries have targeted very specific levels of things that are not coincidental,” he told reporters. “So if you are looking at lobsters in Maine or you are looking at bourbon in Kentucky or you are looking at Soybeans, there are clearly markets being followed.”
Mnuchin said that the administration would be “looking at different opportunities to help the farmers” and provide assistance to other sectors being “unfairly targeted” by tariffs from other nations.
“But I still think from a macro basis, we do not see yet any impact on what’s a very positive growth” performance for the U.S. economy this year, Secretary Mnuchin said.
At a briefing before the G-20 meetings began, U.S. Treasury officials told reporters that Mnuchin would be prepared to respond to concerns being raised by other countries about the Trump administration’s trade policies.
Also speaking in Buenos Aires at the G-20 Summit, International Monetary Fund (IMF) Managing Director Christine Lagarde said the recent series of trade tariffs would significantly harm the global economy.
“In the worst case scenario under current measures” the impact on the global economy “is in the range of 0.5%” of GDP on a global basis, Ms. Lagarde mused.
In a recent appearance before the House Financial Services Committee, Secretary Mnuchin said that the talks with China had broken down and indicated that the United States was waiting for China to come up with concessions to break the impasse.
Saturday, US Treasury Secretary said The Trump Aadministration has been very clear that the objective is to have a more balanced trading relationship with China.
“We purchased about $500-B of goods from them; they purchased about $130-B of goods from us. We share a desire to have a more balanced relationship. And the balanced relationship is by us selling more goods”.
Shayne and I expect China to align with the US’s sloution, as it cannot afford not to.
America First and MAGA
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