Capitalist Pig Hedge Fund Manager, Jonathan Hoenig, told Fox Business’s Kennedy that President Trump’s tariffs on Chinese imports and China’s retaliatory tariffs will have an adverse effect on American businesses and consumers.
“It’s more than a little squabble, Kennedy. The President promised us, this is his own words now, that trade wars were easy to win, and it’s been anything but,” he said. “More than anything, it’s been expensive.”
President Trump tweeted Tuesday that America is “in a fantastic position” in the trade talks because we import much more from China than they import from us. But Hoenig said Trump’s tariffs are going to hurt Americans.
“Tariffs are taxes. Now the president doesn’t often like to admit it, they’re taxes on Americans,” he said. “We’re talking about $2 billion a month, taxes on Americans, now as a result of these taxes. … We’re talking about, for example, $160 more per iPhone than you’re going to pay. So this really has major effects on everyday consumers, and really for no benefit for the U.S.”
U.S. Trade Representative Robert Lighthizer said that trade talks fell apart because China reneged on some of their commitments. A main issue that the U.S. has demanded that China address is intellectual property theft by Chinese companies.
Hoenig said that this sort of trade war is no way to go about resolving intellectual property disputes.
“You punish the individuals, the companies that are engaged in theft of intellectual property… Companies do run a risk when they deal, go in and do business with less-free countries, whether it be China, or Venezuela, or anywhere else. But to remedy that, you don’t punish Americans,” he said.