China’s Economy Grows, And Its Trade Gap With The U.S. Widens

The tech industry, while spared on certain products, called the administration’s approach “misguided” and said it would hurt American consumers while doing little to change China’s trade practices.

“Today’s retaliatory tariffs are not an effective trade policy and may violate U.S. law,” Gary Shapiro, chief executive of the Consumer Technology Association, said in a statement. “We urge the administration to reconsider its misguided approach of increasing tariffs, as they are directly paid for by American companies and consumers.”

The total wave of tariffs thus far has not been large enough to meaningfully affect consumer prices broadly across the economy — only narrowly, for certain products. Economists warn that the effects could grow noticeably larger if Mr. Trump follows through with his threat to subject nearly all Chinese imports to tariffs.

Asked about Mr. Trump’s tweets in the morning, regarding the lack of an impact on prices across the economy from tariffs, Mr. Kudlow stuck with the president. “With respect to the impact of tariffs, we’ll see,” he said. “We’re following it. We don’t see any problems so far.”

“I don’t see any reason to believe at the present time that the president’s trade reforms are going to damage the economy.”

The Trump administration has demanded steep cuts in Chinese tariffs and investment restrictions but has particularly focused on stopping the Chinese industrial policy initiative known as Made in China 2025.

Chinese policymakers have long said that they are willing to cut tariffs in particular, but want concessions from the United States, such as curbs on the Commerce Department’s ability to impose steep tariffs on imported goods that are government subsidized or are dumped below the cost of producing them. The United States has long refused, under the Obama administration and now under the Trump administration, contending that the American market is already so open that further concessions are not needed.

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China’s Economy Grows, And Its Trade Gap With The U.S. Widens


China’s Economy Grows, And Its Trade Gap With The U.S. Widens