During a recent appearance on America’s Newsroom, Fox Business host Charles Payne said he believes that President Donald Trump’s threat to add new tariffs to $300 billion more Chinese imports was behind the over 700-point drop in the Dow Jones Industrial Average.
Newsweek reported that America’s Newsroom co-host Sandra Smith highlighted that Morgan Stanley also warned that a “global recession” is possible if Trump moves forward with 25 percent tariffs on the $300 billion of the East Asia superpower’s imports. In response, Payne said that he agrees that a recession is a possibility.
“It could, it could,” Payne said. “I mean, we’ll see. A lot of people are hoping that maybe the backchannels [between U.S. and Chinese negotiators] are being used right now.”
According to Chad Brown, a trade policy expert at the Peterson Institute for International Economics (PIIE), new tariffs will be bad news for American consumers. He predicts they will pay as much as $900 per household.
“What’s really different about this next round of President Trump’s tariffs is that they mostly hit goods bought by American consumers,” he said.
“For the first time, this means higher costs of clothing, shoes, toys, and a lot of consumer-electronics.”
Per The Inquisitr, a number of experts believe that Trump’s trade war is backfiring on America. In an interview with BBC News, Trump’s former chief economic adviser Gary Cohn said the President’s trade war is harming the United States economy while barely making a dent in China’s.
“I think the Chinese economy was going to slow down with or without a trade war,” he said.
“I don’t really think it’s hitting the Chinese economy,” he said elsewhere during the interview, before saying he believes that the driving forces of the Chinese economy are credit and credit availability.
Cohn said he believes that the trade war has given China an opportunity to slow down their economy, which he suggests is overheated — meaning its productive capacity is lagging behind aggregate demand — and will benefit from a period of slowed production.
After the recent dip in Wall Street stock Monday, Trump took to Twitter to accuse China of using currency manipulation to steal from U.S. business and factories, harm jobs, decrease workers’ wages, and drag down farmers’ prices. But The Inquisitr reported that the market rebounded not long after China eased tensions with the United States following the accusations.
In the past, Trump has criticized China for keeping the yuan artificially low to ensure lower prices of its goods.