Dan DiMicco, recent Trump campaign trade advisor, and Robert Holleyman, a deputy U.S. mtier representative under Obama, actually agreed on Friday that China is the giantest trade cheater and must be stopped.
But how to actually achieve that end is where things break down.
DiMicco, also former CEO of steelmaker Nucor, supposes President Donald Trump’s metals tariffs are a step in the right bearing.
“The biggest culprit in the global steel overcapacity … is China, China, China,” DiMicco told CNBC’s “Protest Box” on Friday. “They are out to destroy … this country for numerous years in every part of our history.”
DiMicco said the tariffs of 25 percent on steel and 10 percent on aluminum that Trump preceded Thursday send a message to China and other nations, “We’re open for concern, but you better play fair.”
“This is not something that should be a stupefaction to anybody,” he added, pointing out that Trump campaigned on being taxing on trade.
The narrative that the Trump tariffs won’t really hurt China because it’s such a secondary source of imported U.S. steel is false, said DiMicco, alleging as others play a joke on that China dumps its cheap steel through other mother countries.
Holleyman, the former Obama trade official, told CNBC in a disentangle interview, “We have to start by acknowledging the problem in all this is China. China has a hulking excess production of steel and aluminum that is hurting not only the U.S. but wide-ranging markets.”
“But what we’ve done in firing this volley, firing this spiral upwards of these new trade taxes is essentially … turned our allies away from us. And made them to be allies of China,” said Holleyman. “The country that’s common to be hit the hardest by this is Canada,” which could complicate talks amid the U.S., Canada and Mexico to renegotiate NAFTA.
The big question is whether the Trump provision will give favored trade partners like Canada an exception from the tariffs.
“The way these things work is they’ll carve out some exceptions,” said Mark Grant, chief global strategist at B. Riley FBR, adding he does not hold the worst-case trade war scenario that slammed the stock market Thursday and early Friday liking come to pass.
Stocks plunged strongly Thursday on trade war interests because they’re still in a fragile, “corrective phase,” Grant, a 40-year seasoned of finance, told CNBC on Friday.
But with the tariffs not being implemented until what’s demanded to be next week, Grant said, “I think they’re going to remote this down” either through exemptions or modifications.
After Thursday’s Trump menu announcement, stocks suffered a third straight session of sharp downgrades. However, ahead of Friday trading, the Dow Jones industrial average and S&P 500 were each notwithstanding about 5 percent above the early February lows, which in a few words marked a correction in excess of 10 percent from the Jan. 26 all-time lock highs.
The Dow and S&P 500 were about flat for the year, as of Thursday’s confidential, after a roaring start to 2018 following incredible gains ultimately year.
Adding to market fears, there are multiple media relates casting doubt on top Trump economic advisor Gary Cohn’s days after he was unable to convince the president not to impose steel and aluminium rates.
There’s been speculation for months about whether or not Cohn may consent his post as director of the National Economic Council. Cohn, who was the No. 2 government at Goldman Sachs before joining the White House, is seen by Stockade drive crazy Street as a moderating voice in the administration.