WASHINGTON, D.C.- The U.S. is raising tariffs on $200 billion worth of Chinese goods, and President Donald Trump's now sending out a range of tweets, defending the negotiations, and attacking Democrats and his own pick to lead the FBI.
Sunday, May 12, he tweeted out, We are right where we want to be with China,' and claimed the U.S. will bring in billions of dollars in tariffs, but earlier in the day, the President's Chief Economic Adviser Larry Kudlow contradicted the President's claim, admitting to Fox News that American businesses will feel the pinch from the trade war and that plans to raise tariffs on all Chinese imports could take some time.
"We don't think the Chinese have come far enough," Kudlow said. "It could be a couple of months or thereabouts."
The negotiations are ongoing, and the President appears to have the support of Republicans, though some, like Senator Rand Paul, are expressing concerns.
"Get this done because the longer we're involved in a tariff battle or a trade war, the better chance that we could actually enter into a recession because of it."
The President also used the negotiations as a rallying point later, tweeting China is hoping former Vice President Joe Biden or any other Democrat gets elected in 2020, because he says China, loves ripping off the U.S. That was one of many tweets lashing out at Democrats. Still, they're rolling on with their many inquiries and are now considering imposing fines on Trump officials who refuse to comply with Congressional subpoenas.
President Trump and China's President Xi are expected to be at the G20 meeting and could talk about trade there, but that's not happening until late June. The Quad Cities Investment Group's Mark Grywacheski discussed the trade dispute Monday, May 13 during Your Money on Good Morning Quad Cities.
Grywacheski says the American economy is strong despite the dispute. He says the number of job openings in the country, exceeded the number of people that were unemployed in January of last year. He says that's one of the signs of a strong economy.
"That gap continues to grow," Grywacheski said. "Currently, we're at about 7.5 million job openings, almost 1.3 million more than the number of Americans who are unemployed, so this strong labor market drives consumer spending, which is the cornerstone of economic growth."
In April of this year, the unemployment rate fell to 3.6%, a new 50 year low.