Trump’s tariff fight with China could spiral both countries into recession: Austan Goolsbee
Former Obama economic adviser Austan Goolsbee predicts that President Trump’s tariff battle with China will result in both countries spiraling into a recession.
“I think the administration is putting no weight on the very real possibility that this spirals us out into us raising tariffs on them, them raising tariffs on us and neither of us back down and it drives us both into recession,” he told FOX Business’ Trish Regan on “The Intelligence Report.”
The Trump administration on Wednesday doubled down on its efforts to put pressure on Beijing by proposing a 25% tariff on $200 billion worth of Chinese goods. In response, the Chinese government said that it would definitely retaliate to the potential trade duties.
“This is asking the American people to pay higher taxes in order to fuel what is just a lurching no-strategy approach to the Chinese,” he said.
Goolsbee believes that the president should rely on U.S. allies to help put pressure on China, instead of imposing trade tariffs.
“You have to bring all your allies…The natural allies are Canada, Europe, Japan [and] Australia. Our normal economic allies of the advanced countries of the world that together have proven in the past fairly effective at getting the Chinese to change their behavior,” he said.