White House trade adviser Peter Navarro asserted on Sunday that tariffs on China are not hurting U.S. consumers or farmers, despite reports to the contrary from researchers.
“We’re in a situation where consumers have not been hurt, China is bearing the entire burden,” Navarro said on CNN’s “State of the Union.”
“You put on 10% tariffs on $200 billion. And China devalues its currency by 12%. Are consumers bearing anything on that? No. We have seen absolutely no evidence in the price data. It’s not showing up in the consumer price index,” he explained.
Peter Navarro is White House director of the Office of Trade and Manufacturing Policy. He’s one of the president’s key advisers on China.
“Economist after economist says you’re not being straight with the American people on who is bearing the burden of these tariffs. Why are all these people lying and you’re telling the truth?” the CNN host asked.
Navarro answered, “All I would say to you is look at the data. There’s absolutely no evidence, no evidence whatsoever. We know China is slashing prices. They’re slashing the value of the yuan. They’re hemorrhaging their manufacturing base. I’d be happy to look at some of those studies, but I can tell you this: this president is committed to standing up to China and getting a good deal for the American people.”
— State of the Union (@CNNSotu) August 18, 2019
Navarro on CBS’s “Face the Nation” explained that the Chinese “have borne the entire burden” of tariffs levied by the United States.
“We’ve had tariffs on for over a year, $250 billion worth, and we haven’t seen a thing in terms of inflation. We’ve seen the Chinese devalue their currency and slash their prices. Going forward, what we’re seeing is the fleeing of the supply chain. What’s happening is retailers are finding other sources of supply and we’re getting investment back here in America- and by the way, consumers spend $14 trillion a year. If we have 10 percent tariffs on $300 billion worth of goods, that’s $30 billion. Even if all of that were passed on to consumers, you know what that would be? That would be one-fifth of 1 percent on the consumer price index. It’s nothing.”
President Trump asserted on Aug.15 that US farmers are “getting more than China would be spending,” due to its massive devaluation.
“Through massive devaluation of their currency and pumping vast sums of money into their system, the tens of billions of dollars that the U.S. is receiving is a gift from China. Prices not up, no inflation. Farmers getting more than China would be spending. Fake News won’t report!” Trump tweeted.
Through massive devaluation of their currency and pumping vast sums of money into their system, the tens of billions of dollars that the U.S. is receiving is a gift from China. Prices not up, no inflation. Farmers getting more than China would be spending. Fake News won’t report!
— Donald J. Trump (@realDonaldTrump) August 13, 2019
Navarro also said on ABC’s “This Week,” “We’re going to have a strong economy through 2020 and beyond with a bull market,” predicting future rate cuts by the Federal Reserve, monetary easing by Europe and economic stimulus by China, and the potential passage of the U.S.-Mexico-Canada Agreement by Congress in the fall.