CNBC Interview... "Firm Belief in Tariffs"
"TikTok Has Many Good Points... Facebook 'Enemy of the People'"
Former President Donald Trump, who announced plans to impose high tariffs on China, has now specifically targeted Chinese-made automobiles, signaling a second trade war. He also stated that he would not ban cryptocurrencies or Bitcoin, aiming to attract voters in their 30s.
On the 11th (local time), in an interview with CNBC's program 'Squawk Box,' Trump said, "I firmly believe in tariffs," arguing that tariffs benefit not only economically but also in trading with other countries.
Previously, Trump pledged to introduce a universal 10% tariff on all imports if re-elected. He is also considering raising the tariff rate on China to 60%.
Trump claimed that the high tariffs he imposed on steel during his presidency saved the U.S. steel industry, stating, "Tariffs have a positive impact when other countries are economically taking advantage of us." He added, "China was exploiting us in the steel sector," and "Whenever Chinese steel was imported, imposing a 50% tax made everyone in the steel industry start crying when they saw me."
Trump identified automobiles as the tariff target for his second administration. He said, "If we impose tariffs on China, China will build car factories in the U.S. and hire American workers," adding, "We don't want to bring cars from China. We want to bring cars made by China using American workers into the U.S."
According to MarkLines, China produced about 30 million vehicles last year. Production in January increased by 50% compared to the previous year. Some Democratic senators recently urged President Joe Biden to impose tariffs on Chinese-made electric vehicles.
Trump said, "Right now, China is the boss of the U.S. It's as if we are a subsidiary of China," and argued, "The premise of tariffs is very simple. They are economically good for us and bring our companies back."
The market views the Trump-driven trade war as already anticipated. Experts believe that if Trump succeeds in regaining the presidency, many Chinese companies will relocate to Mexico to avoid tariffs. Chris Rogers, head of supply chain research at S&P Global, revealed that one of China's major automobile manufacturers is already considering establishing a factory in Mexico.
Additionally, Trump stated that he does not plan to crack down on the use of Bitcoin or cryptocurrencies. Referring to the recent launch of Trump-branded sneakers for campaign fundraising, he said, "I found out that many shoes (Trump sneakers) are being paid for with new currency," adding, "At this point, I don't want to take that away."
However, he defined himself as a "traditionalist" regarding currency. Trump said, "I have said that I want one currency, and I want the dollar," and "I don't want people to leave the dollar." On the same day, Bitcoin, the leading cryptocurrency, surpassed $72,000, reaching an all-time high.
He clashed with President Biden, who supports the TikTok ban bill. Trump said, "Without TikTok, Facebook can become bigger. I consider Facebook the 'enemy of the people.'" Facebook had blocked Trump's account in January 2021 after the Capitol riot, citing claims of election fraud.
While Trump tried to ban TikTok during his presidency, he has now changed his stance. He acknowledged national security and data privacy concerns regarding TikTok but said, "TikTok has many good points and many bad points." He added, "Many people like TikTok," and "There are many kids who would go crazy without TikTok."
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