US and China will both lose if they don’t come to trade agreement, former JC Penney chief says
Former JC Penney Chairman and CEO Allen Questrom believes both the U.S. and China stand to lose if no trade agreement is made.
“I’m not an expert on it but I can tell you it’s certainly not good for the customer in the short term,” Questrom told FOX Business’ Neil Cavuto on Monday. “But I truly believe this is going to be short term. I think the reaction of the markets today is really dramatic and I think that kind of brings people to the census. But both parties lose if they don’t come to an agreement. Sooner or later you do get over the egos, and I think there’s a lot to be gained in China and certainly a lot to be gained in the United States.”
In Questrom’s opinion, President Trump is right to take his strong stance on China trade because something had to be done.
“The president, I believe, had to do what he did because this has been going on now for 30-some-odd years. And, again, they have to make sure we’re also on the fair side, too. We have to make sure our – what we are asking them is fair to them as equally fair to our own people.”
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China announced retaliatory tariffs on $60 billion in U.S. goods that will take effect beginning June 1. Tariffs will range from 5-25 percent on more than 5,000 products. Some of those products subject to the 25 percent tariff include decaffeinated coffee, flower buds, sheep meat, frozen fruits, nuts, and oolong and black tea.
Questrom served as chair and CEO of JC Penney from September 2000 to December 2004.