GOP senator on China trade tensions: It's a high-stakes 'poker match'
Amid fears a trade agreement with China is in jeopardy, President Trump says the Chinese Vice Premier is coming to the United States “to make a deal.”
....Guess what, that’s not going to happen! China has just informed us that they (Vice-Premier) are now coming to the U.S. to make a deal. We’ll see, but I am very happy with over $100 Billion a year in Tariffs filling U.S. coffers...great for U.S., not good for China!
— Donald J. Trump (@realDonaldTrump) May 8, 2019
Another round of negotiations is slated to begin in Washington on Thursday.
White House Press Secretary Sarah Sanders told reporters the administration has received “indication” that the Chinese delegation wants to make a deal, though she did not elaborate on what new information the administration may have received.
Despite the show of optimism from the president, tariffs are set to increase on Friday.
Shortly after Trump tweeted on Wednesday morning, the United States Trade Representative moved to make the tariff hike official. Ambassador Robert Lighthizer’s office filed a notice with the Federal Register indicating tariffs on Chinese goods would increase from 10% to 25%.
“In the most recent negotiations, China has chosen to retreat from specific commitments agreed to in earlier rounds. In light of the lack of progress in discussions with China, the President has directed the Trade Representative to increase the rate of additional duty to 25 percent,” the notice reads.
China has threatened to take “necessary countermeasures” if the United States follows through on its tariff threat.
Sen. John Thune (R-SD) told Yahoo Finance it’s a “high-stakes...poker match.”
“The president, I think, is trying to get China’s attention and get them back to the table,” said Thune. “He believes our economy is strong and he has leverage and he’s trying to make the most out of this opportunity to get a deal done with China.”
Many Republican senators have expressed concerns that trade tensions are hurting farmers in their states.
While they may commend the president’s desire to crack down on China’s unfair trade practices, they worry American farmers will pay the price as trade disputes drag on. Thune said farmers need to hear some good news.
“The ag economy is in the tank right now and every bit of bad news just piles on,” said Thune.
China not ‘a fair player’
But Sen. Rick Scott (R-FL) brushed off concerns that higher tariffs will cost American consumers and businesses.
“If you look at the cost of what’s happening to our companies when all the technology is being stolen — add that cost in.”
Scott said he is not confident negotiators will get talks back on track this week.
“I don’t believe China is a fair player,” Scott said. “I mean, think about this — would you do a deal with somebody that constantly violated the law? No, you wouldn’t. That’s what they do. They steal our technology.”
In the end, if there is no trade deal with China, Scott said the tariffs on Chinese goods would still “absolutely” be worth it.
“We’ve got to do everything we can to build up the American economy and stop sitting here and trying to build up the Chinese economy,” he said. “We have Peace Corps volunteers in China. What are we doing? They’re our competition. They’re competing with us for jobs. They’re competing with our companies,” said Scott.
Though he praised the president’s willingness to take on China, Sen. Mark Warner (D-VA) told Yahoo Finance he doesn’t think Trump has a strategy — and China should be addressed with an international coalition.
Sen. Ted Cruz (R-TX) told Yahoo Finance he’s hopeful negotiations will lead to “significant progress” to expand access to Chinese markets. He stopped short of criticizing the president’s plan to raise tariffs.
“There are aspects of trade policy in the Trump administration with which I disagree, but I do think the president has been far more vigorous than President Obama was in terms of pressing our trading partners – especially China – to expand access to their markets,” said Cruz.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at @JessicaASmith8.
Read more:
GOP senators worry metal tariffs could derail Trump's new NAFTA
U.S. Chamber: Fixing infrastructure could 'turbo-charge' economy
Trump's critics say revised NAFTA has 'minimal projected gains'