China trade: Tit-for-tat tariffs won’t work, Carly Fiorina says
The ongoing trade war with China intensified on Friday after higher U.S. tariffs on Chinese goods took effect and Beijing promptly vowed to retaliate with “necessary countermeasures.” But former Hewlett Packard CEO Carly Fiorina said tit-for-tat tariffs are not the “ultimate solution” to striking a deal.
“There's no question that both the U.S. and China have benefited from a trading relationship over the last 25 years. And there's also no question that things about that relationship need to change,” she said during an interview on FOX Business’ “Mornings with Maria” on Friday. “I think the issue now is tit-for-tat tariffs aren't going to work. Maybe its useful pressure in the short term but it's not going to work in the long term.”
Fiorina, also a candidate in the 2016 Republican presidential primary, believes a win for both sides, especially China, is necessary in order to negotiate a successful deal.
“Both sides have to feel they've gotten something, they've won something,” she said." And so what I hope our negotiators are thinking about is we're clear on the win for us. What is the win for China. Not that it’s to our detriment but that's also to their benefit. Without that they're never [going to] cut a deal here.”
Fiorina has first-hand experience negotiating with the Chinese, she said. When she was leading Hewlett Packard, she sensed that they were stealing trade secrets, which led to “ongoing discussions” with the Chinese about the black marketing of printers and cartridges.
“We would find ways to come to accommodation with them to begin to slow that down,” she explained. “Frequently that accommodation was below the headlines, they would actually respond, and that's why I think all the publicity at a certain point becomes counterproductive.”
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At midnight Friday the U.S. hiked tariffs on $250 billion of Chinese goods from 10 to 25 percent. President Trump tweeted early Friday that tariffs make the U.S. stronger.
“Tariffs will bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do. Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!,” he said.
Shortly thereafter, China said it would retaliate.