Republican Urges Trump to Reconsider Trade War with China

GOP Rep. Kevin Brady on Thursday urged President Donald Trump to be cautious about his new proposed tariffs on China.

The House Ways and Means Committee chairman said Trump, who is expected to unveil his plan Thursday, is right to go after China for intellectual property theft, saying the actions by China cost “thousands of U.S. jobs.”

“The challenge for every president is how to do it in a way that doesn’t punish Americans for China’s misbehavior,” the Texas Republican told CNBC’s “Squawk Box.” “So, you’ve really got to narrow these and target these. It is a very discerning line to do that.”

On Wednesday, top U.S. trade official, Ambassador Robert Lighthizer said Trump would target China’s high-technology sector and could also include restrictions on Chinese investments in the United States. He said the policy goal is to structure the tariffs to inflict maximum harm upon China and try to limit the effect on U.S. consumers.

The administration’s actions are just the latest crackdown on China. Earlier this month, the White House announced tariffs on steel and aluminum imports, sparking fears of a possible trade war and sending the stock market into a tailspin. The tariffs could hurt Chinese imports of the metals.

China’s Global Times, the ruling Communist Party’s official newspaper, suggested in an editorial this week that China take against U.S.-subsidized soybean exports.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza