China engages in “predatory” practices according to Peter Navarro, director of the White House Trade Council, who defended the latest tariffs placed on Chinese goods coming into the U.S.
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“This is the time for China to be held accountable for its nonmarket economy behavior, for its cheating. Going forward we can’t have a healthy global economy if one of the biggest economies is basically a predator” said Navarro during an interview on FOX Business’ “Mornings with Maria”.
“It’s no secret what needs to happen,” he said when also discussing the dozens of unfair trade practices, including the forced transfer of U.S. technology to China.
Trump slammed China again in a tweet Tuesday, warning of "great and fast retaliation against China" after announcing on Monday new tariffs on about $200 billion of Chinese imports. The move, which had been expected, imposes 10 percent tariffs on the imports. The levies will climb to 25 percent beginning Jan. 1, 2019. The administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods, if Beijing retaliates against American farmers or other U.S. industries.
Navarro said the effect on consumer prices will be “negligible to positive” and any worries about higher prices are overblown.
“The bigger picture here is these tariffs will lead to import substitutions,” he said. “In other words we’ll start making some [consumer goods] here. If we have those tariffs in place American companies will be able to make things and American workers will make them with their hands. We’ll also see some shift to other countries, which is fine. We’re free traders.”