President Trump said he would do it and he did. He signed a presidential memorandum that could impose tariffs on up to $60 billion of imports from China.
"We have spoken to China and we are in the middle of negotiations," Trump said, adding that the loss of American jobs from unfair trade was one of the main reasons he had been elected in 2016.
The U.S. Trade Representative's office will now present a list of Chinese products that could be targeted, primarily from the high-tech sector. There will then be a 60-day consultation period before any action is taken.
It's that consultation period that interests me. The President is known for his negotiation skills. You'll recall that he exempted Mexico and Canada from the recently imposed tariffs on steel and aluminum and said he hoped for a better NAFTA deal. What does he want from China within the next 60 days?
Meanwhile, Wall Street is not happy about the possibility of a trade war. The Dow Jones Industrial Average dropped more than 700 points Thursday due to fears of a potential trade war with China.
That's not good for my retirement account.
You've heard Congressmen Steve King and David Young along with Senator Joni Ernst denounce these tariffs on my show. They not only fear a trade war but an increase in prices on products for American consumers.