In trade war with China, US made 2 'catastrophic errors,' Stanford Business School lecturer says

When it comes to the tit-for-tat trade war between the U.S. and China, two “catastrophic errors” have been made, according to David Dodson, a lecturer at the Stanford Graduate School of Business.

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“The first one is we decided to fight a trade war with everybody all at once,” he told FOX Business’ Neil Cavuto on Tuesday, adding that “instead of pulling the rest of the countries together and fight a united front against China, because our beef with China is the same beef that other countries have.”

Last week China announced retaliatory tariffs on $75 billion worth of U.S. goods. In response, Trump said that the tariffs on the remaining $300 billion of goods from China – set to go into effect on Sept. 1 at a 10 percent rate – would now be taxed at 15 percent. And, on Oct. 1, the 25 percent tax on $250 billion Chinese goods will be increased to 30 percent.

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The tensions also have a number of businesses concerned, especially when it comes to their operations and costs. In Dodson's opinion, the second mistake has to do with “erratic behavior with the business community.”

Donald Trump is on the verge of losing the support of the business community -- not Wall Street, not the investment world, but the guy who is the supply-chain manager at John Deere or at Home Depot who has to make decisions,” he said. “This is getting very frustrating for the business environment because they don't know whether China is an enemy or a great leader or not.”

Dodson added that once Trump loses the support of business, China can delay trade talks even further because they know “they can make it to November 2020.”