The Trump administration is in the midst of negotiating a new trade deal with China and there is a very real possibility Trump could slap the Chinese with even more tariffs.
That, according to Senator Rand Paul (R-KY), would be a major mistake.
Trump has seemingly reached a point in the negotiations where he does not want to give any more room to the Chinese.
While negotiating with the Chinese, he has also promised even more tariffs if a deal is not worked out, which of course would mean the Chinese hitting us with more tariffs.
Those tariffs, however, could do more harm than good according to Senator Paul.
Sen. Paul stated, “I know of a big prominent company in Kentucky that said the tax cuts significantly helped them, but that the tariffs are almost equal in punishing.
“I’ve talked to the administration about this, I said the great benefits of the tax cut, which has low unemployment and incredible economic growth, could be erased by the tariff war.
“The President is playing a negotiating battle with the Chinese and I think he thinks at this point he can’t back out…but I still have advised the administration: get this done, because the longer we’re involved in a tariff battle or a trade war, the better chance there is we could actually enter into a recession because of it.”
Can’t Risk the Economy
According to recent tweets by the President, he believes that the Chinese feel as though they are getting the short end of the stick.
He further stated the Chinese may wait until after the 2020 election to continue to negotiate hoping someone else gets in the White House.
The problem for Trump, though, is that as Sen. Rand stated, he cannot risk the economy going into the tank in the process.
That is by far the one thing he has going for him that crosses all political lines.
More Americans are back to work, they are making more money, and the economy is booming right now.
This is the magic bullet to fight off the socialist agenda of most of the Democrat candidates.
In the meantime, everyone is waiting for the Chinese to respond to Trump as well as how Trump will move forward with the promised tariffs against the Chinese.
According to one of Trump’s top economic advisors, Larry Kudrow, these measures could take months before they go into effect.
Source: Fox News
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