Trump says tariffs could be permanent, but strikes softer note on China
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President Trump addresses business leaders in China in 2017. Photo: Thomas Peter-Pool/Getty Images
President Trump said Sunday he would need to keep at least some tariffs on foreign goods in place to convince businesses to move production to the U.S.
Why it matters: It suggests that the historic levies on nearly all goods coming into America would remain in some form — even as the White House says it intends to strike trade deals with a slew of nations, including China.
- Such a development would be a huge blow for the economy. It can take years for companies to re-shore manufacturing — and doing so would likely result in higher costs for businesses and consumers.
What they're saying: Trump told NBC's "Meet the Press with Kristen Welker" that he would not rule out the possibility that the tariffs announced in recent weeks might stick.
- "No, I wouldn't do that because if somebody thought they were going to come off the table, why would they build in the United States?," Trump said in an interview that aired on Sunday.
- Trump said auto companies — including Toyota and Ford — have announced plans for additional U.S. plants in the wake of tariff policy.
The big picture: In the face of 145% tariffs, higher than any other country, trade between the U.S. and China has effectively ground to a halt.
- Trump acknowledged the impact on supply chains but played down the impact, noting that it would be fine if children had fewer selections of dolls.
- He told reporters earlier this week that maybe the dolls that are available "will cost a couple of bucks more."
Trump doubled down on those views on Sunday: "We don't have to waste money on a trade deficit with China for things we don't need, for junk that we don't need."
Yes, but: He conceded it was impractical to keep the tariffs on China at their current rates.
- "At some point, I'm going to lower them because otherwise, you could never do business with them. And they want to do business very much. Look, their economy is really doing badly. Their economy is collapsing."
The intrigue: Trump said that there would be no tariff exemptions for small businesses.
- "They're not going to need it," he said, despite a letter from the U.S. Chamber of Commerce that warned of catastrophic consequences for small businesses from the tariffs.
- The massive lobbying group asked the administration to create a tariff exclusion process that could help some of the businesses.
- A separate group that lobbies on behalf of footwear companies also asked for industry relief earlier this week.
State of play: The White House has offered some concessions for some technology products.
- It also softened the blow for automakers this week, a move that administration officials said came after speaking with industry CEOs who said they needed a longer window to shift supply chains to the U.S.
What to watch: Trump in recent days has tempered his tone on China, signaling willingness to strike a trade deal.
- "They want to make a deal. They want to make a deal very badly. We'll see how that all turns out, but it's got to be a fair deal," Trump said.
