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Former Goldman Sachs CEO Lloyd Blankfein supports President Trump's tariff on China as a tool to pressure the Asian nation to enter into a trade deal with the United States.
"Fees could be an effective bargaining tool. To say that it hurts us misses the point. China relies more on trade and loses more, "he tweeted Tuesday night.
In the midst of warnings from US companies, Main Street companies, economists and others, claiming that Trump's tariffs on China would raise costs for US consumers, Mr Blankfein said they could "possibly move on their purchases to domestic or non-Chinese enterprises process to lobby to level the playing field. "
China's economic success is largely tied to its exports, and the country ships a lot more goods to the United States than it imports.
Trump took advantage of the divergence between the introduction of tariffs on $ 250 billion of Chinese goods and the possibility of $ 300 billion of additional products to put pressure on President Xi Jinping to do so. significant concessions in the ongoing trade negotiations.
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While China said it would react with its own rights on $ 60 billion worth of shipments to the United States, experts believe that US consumers are unlikely to have a big impact on prices.
Instead, the country has other tools to fight against the Trump administration, notably by making the activity of American companies in China more difficult.
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Negotiations on a trade agreement between the two countries are at a standstill, but White House officials are expecting further talks in the coming weeks. Trump and Xi are also expected to meet in June at the G20 summit in Japan.
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