(VOR News) – During a talk about the economy that took place on Tuesday in Chicago, former President Donald Trump voiced his disagreement with the editor-in-chief of Bloomberg News.
There was a disagreement because the Republican nominee insisted that tariffs would not have any negative impact in the event that he were to run for a second term. This was the source of the disagreement.
The chief editor of Bloomberg, John Micklethwaite, pressed President Donald Trump on many occasions at the Economic Club of Chicago over his plans to impose a universal tariff on imports and his threats to deploy tariffs on American companies that outsource their manufacturing.
Micklethwaite responded to Donald Trump’s import taxes.
It was pointed out by Micklethwaite that the ideas proposed by Donald Trump would effectively put an end to trade with China, impose a tariff of at least ten percent on European countries, and have a considerable influence on the economy of the United States, which already has forty million jobs that are dependent on trade.
Micklethwaite asserts that “that is going to have a serious effect on the overall economy.” He said something along these lines.
“The impact that it will have is going to be substantial, and it is going to be a great impact. The reaction that Trump gave was that it would have a positive influence because it would be for the better.
The fact that you have spent twenty-five years arguing that tariffs are negative and then have someone clear to you that you are absolutely erroneous in your evaluation of the issue must be quite tough for you to bear.
Micklethwaite added that there have been statements made by individuals indicating that the tariffs that Donald Trump has planned to impose on all imports would be comparable to a national sales tax. This would have an effect on imports that are worth three trillion dollars, and firms would continue to pass on the higher costs to their customers.
“That is nothing more than straight-forward mathematics, President Donald Trump,” he said.
You are correct; yet, it is not in the manner that you imagined. When asked about his response, Donald Trump stated, “I have always been very good at mathematics.”
When he made this statement, he was hinting that increased tariffs would make it more likely for multinational firms to establish manufacturing facilities in the United States.
Micklethwaite warned Donald Trump that the potential impact of tariffs on foreign policy would be the most significant given that they would essentially have the effect of putting economic penalties on friends. This was information that Micklethwaite shared with Trump.
“How does it help you take on China when all of your allies are turning against you?” was the question that he put to anyone who was interested in the matter.
Donald Trump asserted that his statement had significance as China perceives the United States as a naive nation. “They find it difficult to accept that someone has finally regained their rationality.”
There have been several instances on which the former president has suggested the use of tariffs as a viable solution to a wide variety of issues. These issues include the reduction of expenses in industries such as child care, the lowering of the deficit, and the development of domestic manufacturing.
Economists have regularly indicated that this would lead to firms passing on increased costs to customers, which might lead to an increase in inflation.
Trump has asserted that the application of tariffs would result in a reduction in costs; however, economists have constantly stated that this would lead to a reduction in expenses.
Experts have contradicted the claim that President Trump made, which was that tariffs would bring in sufficient income for the government of the United States to compensate for the deficit.
In light of the fact that Trump has primarily engaged with conservative media outlets throughout the course of the preceding month, the event that took place on Tuesday was an extremely uncommon instance of him engaging in a contentious interview.
SOURCE: THN
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