Trumps' tweets capture the president's frustration as his escalating trade war with China heightens the risk of a recession in an election year
The tweets captured the president's frustration as his escalating trade war with China heightens the risk of a recession in an election year.Share on Twitter President Donald Trump on Friday lobbed Twitter attacks at China, U.S. companies and his handpicked Federal Reserve chief as he warned of an unspecified action against the world’s No. 2 economy coming later Friday — a reflection of Trump’s rising anxiety about an increasingly troubled economic picture at home. He responded with fury after taking a pair of blows Friday morning when China announced a fresh round of tariffs and Fed Chairman Jay Powell did not explicitly pledge aggressive interest rate cuts as the president has demanded. Story Continued Below Erupting on Twitter, the president vowed a yet-to-be-announced counterattack against Beijing, ordered U.S. companies to find an alternative to doing business with China and suggested Powell could be a “bigger enemy” than the country’s communist leader. It was unclear exactly what Trump meant with his directive to the U.S. companies or whether he plans additional action to execute the order, but the tweets captured the president's frustration as his escalating trade war with China weighs on the economy and heightens the risk of a recession during an election year. "Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue," Trump wrote. "I won’t let that happen! We don’t need China and, frankly, would be far better off without them." He continued, "The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States." Investors had been in a relatively forgiving mood after both the China tariffs and the Fed speech. But Trump’s tweets triggered a sharp sell-off in the stock market, with the Dow Jones Industrial Average down more than 500 points in afternoon trading. Trump’s tweets took the president’s aides by surprise, triggering the latest instance of the White House making policy on-the-fly after Trump issued a directive via Twitter. Trump huddled midday with his economic team including trade adviser Peter Navarro, U.S. Trade Representative Robert Lighthizer, National Economic Council Director Larry Kudlow and Treasury Secretary Steven Mnuchin, who was on vacation and called into the meeting by phone, according to a senior administration official. The president seems unlikely to back away from the trade stand-off with China anytime soon, close White House allies and current and former administration officials said. During a two-hour meeting in the Oval Office on Monday with several top aides and Cabinet members, Trump repeatedly told attendees “I just want a fair deal” when it comes to China. The meeting included discussion of both China and trade, among other topics, ahead of this weekend’s G7 summit. “The president is optimistic and confident that the U.S. has the benefit and the upper hand with China,” insisted one former senior administration official. “I do not think he will back down.” Current and former White House aides viewed China’s retaliatory tariffs on Friday — and Trump’s Twitter response to them — as both countries angling for dominance ahead of the G7. A speed read on global trade news — weekday mornings, in your inbox. Email Sign Up By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. China on Friday announced a fresh round of tariffs on $75 billion in U.S. goods ranging from 5 percent to 10 percent. They will go into effect in waves beginning Sept. 1 and Dec. 15, Beijing said. China’s state-run news agency Xinhua on Friday quoted the country’s tariff commission, which said the penalties were in response to levies threatened by the U.S. on $300 billion worth of Chinese goods. “The U.S. measures have led to the continuous escalation of China-U.S. economic and trade frictions, which have greatly harmed the interests of China, the U.S. and other countries, and have also seriously threatened the multilateral trading system and the principle of free trade,” Beijing said. The announcement from China was shortly followed by a speech from Powell in which he said the central bank stands ready to do what is necessary to support the record-long U.S. economic expansion. But he did not signal that significant interest rate cuts will be coming soon, angering Trump. "As usual, the Fed did NOTHING! It is incredible that they can 'speak' without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work 'brilliantly' with both, and the U.S. will do great," Trump tweeted. He then launched a personal attack on Powell, writing, "My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Among the options Trump was weighing for hitting back against Beijing is increasing a 10 percent tariff to 25 percent on almost all remaining Chinese imports, said a person close to the deliberations. Another option on the table was reversing a special waiver granted this week that gave U.S. companies three more months to conduct a limited amount of business with blacklisted Chinese telecommunications giant Huawei, the person said. Trump’s outrage at China’s retaliation was largely driven by his perception that the Chinese economy is on the brink of ruin and Beijing would be reluctant to make a move that would further put it in jeopardy, the person said. “It was a great surprise to Trump,” the person said of China’s announcement that it would retaliate. Trump has repeatedly claimed in recent days that U.S. tariffs were causing China to hemorrhage jobs, up to 2.5 million “in a very short period of time,” and has cited other numbers. “They had the worst year in 27 years, but I think it was actually 52 or 54 years. It was the worst year they've had in a half a century. And that's because of me,” Trump told reporters Wednesday. The person close to the talks said Trump’s view has been largely informed by Navarro, who has advocated a complete decoupling between the U.S. and Chinese economies. Trump on Friday echoed that sentiment by telling U.S. companies to leave China. Other aides have cautioned Trump not to discount China’s ability to weather economic pain and its willingness to retaliate against the additional tariffs he announced on Aug. 1, the person said. Meanwhile, a U.S. companies in China say they aren’t going anywhere despite the challenges of operating in that market. “China will contribute a significant proportion of global growth in the decades ahead,” said Jake Parker, senior vice president of the U.S.-China Business Council. “Missing out on that opportunity would weaken the competitiveness of U.S. industry and harm the United States national interests at home.” poster="http://v.politico.com/images/1155968404/201908/989/1155968404_6076227192001_6076220465001-vs.jpg?pubId=1155968404" true Earlier on Friday, Navarro, who provides a strong protectionist voice on U.S. trade talks within the Trump administration, denied that China's announcement caught the White House off guard and downplayed the impact of the move. “This was a move that was well-signaled,” Navarro said on CNN. “It's breaking news, I guess, but it was well-anticipated.” The latest front in the tariff battle between China and the U.S. comes as fears grow about a recession. Trump has tweeted relentlessly about the issue in recent days, pinning blame on Powell while he heralded what he says is a booming economy that he's accused the news media of trying to tank to hurt his reelection prospects. Though he conceded the economy was slowing, Navarro blamed the Fed for slow-walking rate cuts, calling economic worries "a pure Federal Reserve effect on higher interest rates." Navarro was pressed on some business leaders’ admissions that the uncertainty due to the trade war was dampening investment, but he again blamed monetary policy emanating from the Fed. “They can't make investments because the Fed raised interest rates too far, too fast,” he argued. “If you raise interest rates, you cut down investment and you cut down exports.” Ahead of Powell's speech, both Navarro and Trump appeared confident in what the Fed chief would say, sentiments that apparently evaporated immediately after the Fed chairman’s remarks at a Kansas City Fed conference in Jackson Hole, Wyo. "Now the Fed can show their stuff!" Trump said about an hour before the speech. Navarro also talked up Powell's remarks, framing them as a potential counterweight to the tariff news. "What's important today — look, this is a big day, tomorrow is a big day. It's a big day today because we're going to get better signals from the federal reserve as to whether they're going to get in line with over 30 central banks around the world that have been cutting rates," he said, adding later that forecasting aggressive rate cuts should show "he's got America's back." The central bank and Powell have become favorite punching bags of Trump as ominous economic signs have emerged ahead of next year’s election. But Navarro, unprompted at the top of the CNN interview, said there's "no anxiety in the White House about the economy.” "We don't run around the West Wing with anxiety. We look at the chessboard and we see basically a strong Trump economy growing at 2 percent because of tax cuts, deregulation, cheap energy and trade," he said. Navarro also defended Trump's decision this month to delay tariffs on certain Chinese goods like electronics and some clothing until Dec. 15, citing a desire to avoid the tariffs hampering the Christmas shopping season. He would not say if Trump would reimpose those tariffs in light of China's latest move, saying the White House would have conversations about it and reiterating that it "is not breaking news." The U.S. Chamber of Commerce, the leading lobbying group for U.S. businesses, sought to lower the temperature. “U.S. companies have been ambassadors for positive changes to the Chinese economy that continue to benefit both our people,“ Myron Brilliant, the Chamber's executive vice president and head of international affairs, said in a statement. “We do not want to see a further deterioration of U.S.-China relations. We urge the administration and the government of China to return to the negotiating table.“ While China‘s latest latest retaliatory tariffs seem to have especially provoked Trump's fury, they represent “a mild, proportionate response,” to the U.S. decision earlier this month to move forward with more duties, said Agathe Demarais, global forecasting director at The Economist Intelligence unit. “The recent rise in nationalist, patriotic behavior in China means that it would have been impossible for the Chinese government not to react to the latest US tariffs,” she said. In the grand scheme of things, tariffs of 5 to 10 percent on $75 billion worth of imports “is not even a rounding error in estimating the impact on the U.S. economy,” added Derek Scissors, a China expert at the American Enterprise Institute who has advised the Trump administration. But the move is more of a “token action” that signals that Beijing doesn’t see ongoing trade talks between the two countries going anywhere, he said. The two sides have for more than a year been engaged in talks discussing systemic issues like China’s handling of U.S. intellectual property and other market access and trade issues, including its purchases of American farm goods. In his later tweets, Trump also singled out shipping companies, writing, "Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop - it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!" Trump and his aides have been mostly unyielding in his complaints that Powell and the Fed are to blame for any economic sluggishness, but Powell on Friday singled out the erratic trade directives coming from the White House. Earlier this week, Trump contended that “we don't have a fed that knows what they're doing,” asserting that if Powell would follow his advice the economy would take off like a “rocket ship.” Powell vowed that the central bank will “act as appropriate” to sustain a record-breaking period of economic growth following the 2008 financial crisis. But he steered away from providing specifics, calling uncertainty stemming from Trump’s trade policies one of the major factors he was keeping an eye on. He also cited other geopolitical events like the growing possibility of a hard Brexit, rising tensions in Hong Kong, and the dissolution of the Italian government, saying that "long term bond rates around the world have moved down sharply to near post-crisis lows." But the Fed chief emphasized the novelty of the current trade environment, telling the audience that “fitting trade policy uncertainty into this framework is a new challenge. There are… no recent precedents to guide any policy response to the current situation.” He continued, “while monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rulebook for international trade. We can, however, try to look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives.” Megan Cassella contributed to this report. Read more: POLITICO
You have to be impressed by Putin. He's brought the greatest power in world history to it's knees without firing a single shot. He owns the Republican party, the US Senate and the POTUS. Trump and his entourage are a bunch of idiots if they think that the 1 industrial/commercial producer in the World cannot retaliate not just in kind but also hurt the economy in the USA real bad. Our Chief Clown got into a mindless fight that cannot win & this will end badly.
He’s nuts. 25thAmendmentNow for 45. What an idiot! He’s taking the country over the cliff! IMPEACH NOW before it’s too late! Where are the adults in the Republican Party?Impeach Excellent news 😂 what a dottering dotard awesome that's OUR potus. USA first. Trump is a nut case! 25th amendment NOW!Impeach
Trump u r history! WERE F'D... and your GOP You and Trump both own this Mess and the Killing of AMERICA... What’s it going to be like the UK dealing with America OMG 😮
Escalation in U.S.-China trade war threatens global economy, poses Trump reelection riskAmerican cars, soybeans and oil largely produced in key swing states have been targeted for additional import tariffs by China, marking the latest volley in a widening trade war with the United States that has damaged the global economy. Sure, let's be more like China/Russia, the liberal socialist are the answer 😂 You are wrong! Please stop, getting old.
China should just stop producing American good overnight. It can afford to. See how the US economy tanks and inflation hits middle America before November next year. Then renegotiate with an intelligent regime. I’m sorry but, ONCE AGAIN, what is the national security threat from China? That is the ONLY provision that allows POTUS to unilaterally impose tariffs without approval from Congress.
Great more TrumpTaxes the middle class workers will receive the brunt of the load. Again. I was told there would be winning. Brahhhhhha! That will work! Brahaha! Recession here we come! What happened to the concern for Christmas shopping? The bloated ginger dotard continues to destroy the economy. Um, he's probably wearing Depends by now.
We cannot count on media people bcz they are too SLOW. They aren't curious enough to ask why Trump continues to prick China (our main credit holder) w/ stick? What happens to the US dollar if China sells our debt to Russia? Trump doing Putin's bidding to COLLAPSE the US economy. ....he thought our markets weren't GLOBAL!!
Trump Orders American Companies to ‘Start Looking for an Alternative to China’Breaking News: President Trump said U.S. companies should look for 'an alternative to China' after Beijing retaliated with new tariffs in the escalating trade war Well done President Trump! Recession here we come. Yeah, start with Trump products
Another Fantastic Friday in Trumpworld. He seems to think punching himself in the face will bring Xi to his knees. Trump tweeted that he would raise tariffs on $250 billion in Chinese goods from 25 to 30 percent on Oct. 1 and that a 10 percent tariff set to go into effect on Sept. 1 will be raised to 15 percent.
Watch China and South Korea and Russia in our elections The US Democratic does not have to surrender China(5) Did you know that China has put wave-shotguns under our butts?The New York times, the chairman of the federal reserve, the FBI comey, all the news media are Chinese? Our leaders are gang-raped by Chinese brain-control?
order the strait jacket in XXXXL.... This is lunacy, not frustration. We’re bordering on a Constitutional Crisis. when they say they aren't worried, they are worried.. the FederalReserve & the Globalist Establishment (the Dems + GOP = GlobalistHOARD) & Wall Street (like GoldmanSachs et all) & FoxNews are collectively weaponizing the Stock Market to use as a cudgel to TRY & FORCE realDonaldTrump into SELLING OUT WeThePeople to China
“Trump’s tweets capture the president’s further mental deterioration” fixed it for you.
To Gain Leverage in China Trade Talks, Trump Shows Solidarity With Hong KongPresident Trump has come to see the demonstrations as a point of leverage in trade negotiations with Beijing after months of viewing them as an internal matter for China. “It would be very hard to deal if they do violence,' he said on Sunday. What did he say about kim, his lover? And he has the audacity to talk tash about hongkong? 🤦♂️🤡💯
So sad and unbelievable! This is not 'FRUSTRATION'. It is utter insanity! Trump is delusional. Dementia has taken whatever intelligence he may once have possessed and it has scrambled it into a vile and ugly mess. Trump is not fit for office and the republican party is pretending it doesn't see it. Trump: 'Trade wars are good, and easy to win' March 2, 2018
The Chinese steal R tech, knock off R products & then turn around & compete unfairly in OUR marketplace. They have gotten a free ride & gotten rich on R backs while Americans have lost jobs. Trump is right on this! Buy American made products!! Keep jobs here! No worries! Hit the golf course. That Trump Aude is bat shit crazy.
Well what about the financial disaster President Obama faced upon taking office? Next Drunken Kudlow will agree with trump’s aid saying nothing to see here. If he'd just put down the matches, he'd have fewer fires to put out. Just sayin' he’s a lunatic.A madman. An unstable, unhinged sociopath. 'We’ve got a teetotaling president who sounds like the angry guy at the end of the bar, mouthing off about whatever he sees when he looks up at the television. Closing time can’t come fast enough.'
China hits back at the Trump administration with tariffs on $75 billion worth of US productsThe move came after President Donald Trump said this month he would slap tariffs on all remaining imports from China on those dates. PaxNostrum So. Much. Winning.
Russia! Russia! Russia! Racist! Racist! Racist! Recession! Recession! Recession! Soon Navarro will not be able to leave the bunker. BREAKING: Trump blames surging New York Mets for fall in stock prices.
China Retaliates Against Trump, Slaps U.S. With $75 Billion TariffsThe move comes after Trump delayed some tariffs on Chinese goods. What else were you guys expecting... lol You have to admit that he's an attractive male though, right? I think all you instagram models and “public figures” should take a week off of posting selfies and bashing everyone and spread awareness of the fires in the AmazonRainforest AmazonFire amazonrainforestfire forestfire amazon
China Retaliates Against Trump, Slaps U.S. With $75 Billion TariffsThe move comes after Trump delayed some tariffs on Chinese goods. No surprise there.... thing is serious between the two countries You putting him on your cover for so many years Inspired this/his movement Don’t ever forget Forbes