The White House on Wednesday took a shot at a proposal from former President Trump to impose a 10 percent tariff on foreign imports into the United States, warning it would lead to higher prices.
“President Biden strongly opposes plans to hurt hardworking families with higher prices and higher inflation — as even economists who served in the Trump White House warn such an agenda would,” deputy press secretary Andrew Bates said in a statement.
“Combining a sweeping tariff tax on the middle class with more trickle-down tax welfare for rich special interests would stifle economic growth and fuel inflation,” Bates added.
The White House’s statement came roughly a week after Trump sat for an interview with Fox Business Network host and former Trump White House official Larry Kudlow, who asked him about potential economic policies for a would-be second term.
“Number one, I think we should have a ring around the collar, as they say,” Trump said. “I think, when companies come in and they dump their products in the United States, they should pay automatically, let’s say, a 10 percent tax.”
Trump argued that the 10 percent tariff on imports would not stop business, but “would really make a lot of money.”
He leaned heavily on tariffs during his first term in the White House, which at times led to escalatory trade wars with countries like China. Beijing’s tariffs on U.S. products hit American farmers particularly hard, forcing the government to provide aid to many farmers.
The White House on Wednesday sought to contrast Trump’s proposal with President Biden’s record, pointing to steadily declining inflation over the past year. Polls, however, have shown a majority of Americans still do not trust Biden’s handling of the economy.
“President Biden’s top priority is to protect the higher wages, lower costs, and progress against global inflation he’s delivering for middle class families — which has now forced inflation lower in the United States than any wealthy peer country,” Bates said in a statement. “That means continuing to bring jobs back to America at the strongest pace in decades — an unfulfilled promise from the last administration that this president is making a reality — and continuing to work together with our allies against trade abuses committed by countries like China.”
Source: The Hill