“I think Trump understands tariffs are more than taxes. They are about self-empowerment of the working class,” he said during an interview on FOX Business’ “Lou Dobbs Tonight” Monday.
Trump's latest threat to impose a 25 percent tariff increase on $200 billion in Chinese goods is an addition to the U.S. tariffs already levied on $250 billion of Chinese export.
Bannon said the three previous administrations bares the responsibility for reneging on any trade deal with China and putting the U.S. in a disadvantage position.
“Trump said, ‘I am not going to do this. You’re not going to come back and re-trade us. I am going to hit you with the tariffs,’” he said. “I think this is a very big week in American economic history.”
Bannon is accusing corporate America and Wall Street of trying to rush Trump into making a trade deal with China out of fear that the U.S. stock market will collapse.
“This is an economic war. We’re going to have fundamental, structural change in the state capitalism that China has,” Bannon said. “We are going to get changes on force technology transfers, subsidies state own industries, intellectual properties.”