As many of us know, Republican frontrunner Donald Trump has vehemently criticized China, Japan and other countries for devaluing their currencies. According to Trump, these nations have eroded the value of their money so much that it makes it harder for the United States to compete and it takes away jobs from Americans.
Speaking in an interview with CNBC (via Reuters) on Thursday, Trump explained that these types of devaluations are diminishing the manufacturing sector in the U.S., adding that it’s taking American jobs outside of the country.
He accused the federal government of just sitting back and doing nothing. In the end, Trump says, it’s going “to be very dangerous as far as I’m concerned.”
Trump’s solution is to charge a tax on products made overseas and sold in the U.S., especially those from China.
“China is the grand master of all,” Trump said. “I have great relationships and business relationships with China, and even those people say they can’t believe what they’re getting away with.”
Apparently he missed the point that cheap foreign goods are beneficial to American consumers, much like lower oil prices are helping U.S. consumers who are having a hard time getting by.
In addition to imposing a tax, Trump noted that he would cease corporate inversions, a move that sees U.S. companies buy a foreign firm and then move its headquarters to that location in order to reduce its tax bill. He cited Pfizer as an example of a company that left the country.
“There are things that are very structurally wrong with what we’re doing,” he said. “I think it’s $5 trillion, but I don’t think our country has any idea what it is, but I think it’s much more than $2.5 trillion.”
Trump averred that Republicans and Democrats both say they want to end inversions, but accused them of being unable to make a deal due to the fact they have lack leadership.
“I could make a deal in 15 minutes by getting people in a room,” Trump said. “Everybody wants that money to come into the United States. It would be so easy.”
Ahead of Thursday night’s debate, Trump is leading the polls in the next voting states, though he is having a tough time in Ohio as he is statistically tied with Governor John Kasich. Trump currently has a 99-delegate lead over Texas Senator Ted Cruz.
“cheap foreign goods are beneficial to American consumers”
Not, if they can be made here, and sell for less, because of cheaper transportation cost and other tax breaks. If our government would just give incentives for American made goods.
I purchased a pizza pan (store brand) made in the USA at Wal-Mart for $4.99. It was much better than the cheap piece of crap with the Farberware (name brand( made in China, priced at $7.99.
Don’t try and tell me Cheap crap from China Is good for the consumer. Electronics that break in months not years or do not even work at all right out of the box. Two steps forward 3 steps back for the American worker.