Global Markets Fall as U.S.-China Trade Tensions Rise
Wendy Cutler on NPR
ASPI Vice President Wendy Cutler spoke to NPR's John Ydstie on All Things Considered about how China would retaliate against U.S. tariffs and what impact this will have on the U.S. and global economies. The U.S., which has already announced tariffs on approximately $50 billion worth of Chinese goods, has indicated that it may consider additional tariffs against China.
Cutler states that it is unfortunate that U.S. President Donald Trump is "ready to escalate the dispute with China even if it means retaliating in the hundreds of billions of dollars." Because China does not import as much from the U.S. as the U.S. does from it, she explains that China will likely retaliate through tariffs plus other "qualitative measures" against U.S. companies. This would include "everything from withholding parts for a company so they can't make their final product" and "holding off approvals for certain products and factories."
Cutler expresses concern that the trade conflict is becoming increasingly hostile. "When two sides are being so public about what they're willing to do and how they're willing to hurt each other, it's hard then to move off the ledge and to get back to the negotiating table." (4 min., 42 sec.)