Opinion: The trade tensions with China could very well be resolved through negotiations
EDITOR'S NOTE: Boris Epshteyn formerly served as a Senior Advisor to the Trump Campaign and served in the White House as Special Assistant to The President and Assistant Communications Director for Surrogate Operations.
WASHINGTON (Sinclair Broadcast Group) - The United States and China have announced several competing, pending, tariff packages.
What does that mean for you? In terms of actual new tariffs being imposed, nothing quite yet.
From the American side, the Trump administration has announced potential tariffs on as much as $150 billion of Chinese goods sold here in the United States. The tariffs are at least 60 days from going into effect. My hunch is that most of them will be negotiated away.
The Chinese have retaliated. They announced tariffs of their own on up to $50 billion of American goods so far. The start date of those tariffs are unclear, as well.
With none of these tariffs imposed why does it matter? Well, the back and forth is causing some volatility in the markets.
I believe these worries are premature. It is far from clear whether most of the tariffs will ever see the light of day. The recently agreed to in principle trade deal with South Korea shows that a lot can be achieved through negotiation with our trade partners.
Here is the bottom line: I believe that the U.S. and China will sit down and work out a deal. President Trump and President Xi Jinping have developed a good relationship. The U.S. is China’s largest trading partner with China enjoying a huge trade surplus. On the flip side, the U.S. has lost millions of jobs because of that very trade imbalance. The current uncertainty could very well be worth it because a fair trade relationship with China would mean a ton more jobs and a stronger economy here at home.