In a recent interview on Fox Business Network’s “Kudlow,” White House Council of Economic Advisers Chair Stephen Miran discussed the ongoing trade war with China and the impact of tariffs on American businesses. Miran expressed confidence that the United States has the upper hand in the trade negotiations and that exporters will ultimately bear the brunt of the tariffs.
Miran’s comments come amidst the escalating trade tensions between the US and China, with both countries imposing tariffs on billions of dollars worth of goods. While some have expressed concerns about the potential negative effects of tariffs on the US economy, Miran believes that American businesses have the flexibility to adapt and overcome any challenges posed by the tariffs.
According to Miran, the reason why exporters will end up bearing the majority of the cost of tariffs is because they are “inflexible” while the US is “flexible.” This flexibility, he argues, gives the US an advantage in the trade negotiations as American businesses have the ability to switch to importing from different countries or even switch to home production.
The White House has been vocal about its stance on tariffs, with President Trump stating that they are necessary to protect American industries and jobs. Miran echoed this sentiment, stating that the tariffs are being used as a tool to bring China to the negotiating table and address long-standing trade imbalances.
While some critics have argued that tariffs will lead to higher prices for American consumers, Miran believes that the impact will be minimal. He pointed out that the US has a diverse range of trading partners and can easily switch to importing goods from other countries if necessary. Additionally, he believes that American businesses will be able to absorb the cost of tariffs rather than passing it on to consumers.
In fact, Miran sees the tariffs as an opportunity for American businesses to become more competitive and innovative. He believes that the tariffs will encourage businesses to switch to home production, which will not only create more jobs but also reduce the country’s reliance on imports.
The White House’s stance on tariffs has been met with some criticism, with some arguing that it could lead to a global trade war. However, Miran remains confident that the US will come out on top in the negotiations. He believes that the US has a strong economy and a diverse range of trading partners, giving it the upper hand in the trade negotiations.
In conclusion, while the ongoing trade war with China has caused some uncertainty, the White House remains steadfast in its approach. Miran’s comments on the impact of tariffs on exporters and the flexibility of American businesses paint a positive picture of the US economy and its ability to weather any challenges. With the US showing no signs of backing down, it remains to be seen how the trade negotiations will unfold and what the ultimate outcome will be.
