Trump Remains a Fan of Tariff Strategy After Mexico Results

President Donald Trump, energized by the new border deal with Mexico, made it clear Monday that tariffs are a key weapon in his arsenal as he moves forward with trade talks with China and other countries.

“People haven’t used tariffs, but tariffs are a beautiful thing when you are the piggy bank, when you have all the money. Everyone is trying to get our money,” Trump said during a telephone interview with CNBC’s “Squawk Box. ”



Trump said his threat to impose tariffs on Mexico encouraged the country to agree to stronger immigration enforcement, and he predicted the strategy will be successful with China. The president again argued that tariffs will push companies to move jobs to the U.S.

“The China deal is going to work out. You know why? Because of tariffs. Because right now China is getting absolutely decimated by countries that are leaving China, going to other countries, including our own,” Trump told CNBC’s Joe Kernen. He contended that companies would “move out” of China or Mexico and relocate to the U.S. due to tariffs.

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