After weeks of back-and-forth retaliatory tariffs between the U.S. and China, the Trump administration announced this week that it would take a less aggressive approach with traditional allies, including expanding use of the Committee on Foreign Investment in the United States (CFIUS).
That decision was applauded by Silicon Valley Leadership Group CEO Carl Guardino, which is responsible for representing some of the tech’s most-respected employers, and millions of workers at those companies.
“We’re a global economy, and whether you’re a scrappy startup struggling to survive or a global firm, this need for foreign investments spurs innovation,” he said during an interview with FOX Business’ Liz Claman on Thursday. “It spurs American job creation. It helps us to be competitive around the world.”
The president on Thursday backed off his initial threats of limiting Chinese investment in the U.S., instead throwing his support behind a bipartisan effort that expands the types of foreign deals that are subject to scrutiny by CFIUS, which is an American interagency group that examines foreign investments to determine whether they threaten national security.
While the U.S. is still moving ahead with its 25% tariff on $50 billion worth of Chinese goods -- and vice versa with China, which imposed a tariffs worth $34 billion on 545 American goods -- Guardino said allowing investment in America to flourish will only help consumers.
“Tariffs are like a boomerang,” he said. “You throw the boomerang at an opponent, and that comes right back and whacks the wallets and the heads of American families, because tariffs in return are like a tax on American products. That doesn't help anyone.