President Donald Trump shouldn’t impose “sweeping” tariffs against China because U.S. consumers will face higher prices and China will likely retaliate, according to Eurasia Group’s Michael Hirson.
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“It is almost certain that China will retaliate against this move,” Hirson, who is responsible for the group’s coverage of China, told FOX Business’ Ashley Webster on “Countdown to the Closing Bell.”
As reported by Reuters, Forty-five U.S. trade associations have sent the president a letter opposing potential tariffs against China.
Hirson said Trump’s 25% steel and 10% aluminum tariffs are different from the potential China duties.
“This is different from the steel and aluminum tariffs that the administration released a few weeks ago,” he said. “This is not really, I think, about short-term politics … So it is motivated by a deeper set of concerns about the level playing field, lack of a level playing field with China and national security issues.”
Tariffs shouldn’t be out of the question as long as they’re not broad, according to Hirson.
“If we’re talking about some concrete aims where we think there is room for negotiation with Beijing, I don’t think many people would argue with that,” he said.