Trump renews calls for tariffs on China if yuan continues slide
Oh, the irony.
In his latest attack on China, US Republican presidential hopeful Donald Trump called for higher tariffs on Chinese goods if China does not stop allowing its yuan to devalue.
But the sad truth is that the people most likely to be hurt by such a move would be Trump’s supporters. People looking to emulate Trump’s sartorial style with his line of Donald Trump shirts and ties, would end up paying more as this entire collection is manufactured in China.
When forced to address this apparent hypocrisy over the summer, Trump said China is a cheaper place to make ties because it manipulates its currency. So, it’s nice to know the Donald is willing to take a hit on his profits to help America.
During the Republican Presidential Debate Thursday night, Trump was asked about his call for a 45% tariff on all Chinese goods to offset devaluation.
While Trump said he had been misquoted on the 45% figure when asked at the debate, he admitted he was “totally” in favor of threatening China with a significant tariff.
“They’re devaluing their currency, and they’re killing our companies,” Trump said. “We are letting them get away with it, and we can’t let them get away with it.”
Trump’s opponents in the debate roundly criticized him for demanding tariffs.
“This would be devastating for our economy,” Former Florida Governor Jeb Bush said adding, that it would only prompt retaliation against U.S. goods.
US Senator Marco Rubio of Florida said he opposes tariffs on Chinese goods because it would only increase prices for American consumers.
“China doesn’t pay the tariff, the buyer pays the tariff.”
The yuan rose slightly on Friday, but stands about 1.4% since the beginning of the year and has lost nearly 5 % since August.