TRISH: PRESIDENT TRUMP DOUBLING
DOWN ON TRADE, PROPOSING TARIFFS
ON $200 BILLION OF CHINESE
GOODS.
THE WHITE HOUSE IS HOPING TO PUT
ENOUGH PRESSURE ON BEIJING IN
ORDER TO GET THEM BACK TO THE
NEGOTIATING TABLE.
WITH THE CHINESE ECONOMY SLOWING
DOWN IS THE STRATEGY GOING TO
WORK?
JOINING ME FORMER ECONOMIC
ADVISOR TO PRESIDENT OBAMA,
AUSTAN GOOLSBEE.
GREAT TO SEE YOU.
>> GREAT TO SEE YOU, TRISH.
>> EVERY DAY WE DON'T STARTED
TRADE WAR IS A GOOD DAY FOR
AMERICA.
A LOT OF THE DAYS IT FEELS LIKE
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
TRISH: OKAY, WHAT ABOUT THE FLIP
SIDE ABOUT THIS?
CHINA IS STEALING INTELLECTUAL
ESTIMATES -- 600 BILLION.
IF WE WANT TO LEVEL THE FLAYING
LEVERAGE?
WHAT'S HAPPENED HERE TODAY IS
THAT THE TRUMP ADMINISTRATION
FIRST ANNOUNCED TARIFFS.
THEN THEY DISCOVERED THAT THE
COMPLETE SIZE OF TARIFFS,
THEREFORE WE UP THE TARIFFS.
THAT IS ASKING THE AMERICAN
PEOPLE TO PAY FOR THIS.
WE SHOULD CONFRONT THEM ON
INTELLECTUAL PROPERTY.
THE UNITED STATES HAS DONE SO IN
THE PAST WITH SOME SUCCESS.
THE WAY YOU GET SUCCESS IS, YOU
GET SOME ALLIES.
YOU DON'T DECLARE TRADE WARS
AGAINST THE VERY ALLIES THAT YOU
NEED TO HELP WITH THE CHINESE.
TRISH: CAN I ASK YOU A QUESTION.
GO OUT AN LIMB HERE.
YOU SAY WE DON'T WANT ANY STUFF
FROM CHINA PERIOD ANYMORE.
WE'LL NOT TAKE IT.
WE'LL GET IT FROM SOMEWHERE
IMPORTS?
TRISH: WE'LL NOT TAKE IT FROM
CHINA PERIOD.
CHINA, GOOD LUCK.
WE'RE YOUR BIGGEST CUSTOMER,
WE'LL NOT BUY ANYTHING ANYMORE.
WHAT WOULD HAPPEN THEN?
>> TWO THINGS THAT WOULD HAPPEN,
CHINA WOULD BE MASSIVELY DAMAGED
AND U.S. INDUSTRY WOULD BE
MASSIVELY DAMAGED THAT IS THE
EXACTLY THE MENTALITY LEADING
THIS THING THEY'RE DISCOUNTS THE
POSSIBILITY OF A TRADE WAR.
LIKE SAYING I WILL LIGHT YOUR
HOUSE ON FIRE AND THEY SAY, IF
YOU LIGHT MY HOUSE ON FIRE I
WILL LIGHT YOUR HOUSE ON FIRE.
AH-HA, MY HOUSE IS SMALLER THAN
YOUR HOUSE.
ALL RIGHT BUT BOTH HOUSES ARE ON
FIRE.
TRISH: AUSTAN WE DON'T WANT THEM
TO HAVE TARIFFS, WE WANT THEM TO
STOP STEALING OUR STUFF WHAT
LEVERAGE DO WE HAVE, ECONOMIC
LEVERAGE BY THE WAY?
BECAUSE WE DON'T WANT TO DO
ANYTHING THAT WOULD INVOLVE ANY
MILITARY.
>> PLEASE, DO NOT --
TRISH: I'M NOT.
IN OTHER WORDS, I WORRY, AUSTAN,
IF WE FAST FORWARD 50 YEARS FROM
NOW, IF THEIR ECONOMY KEEPS
GROWING AND OUR DOESN'T, THEN
WE'RE GOING TO BE IN A SITUATION
WHERE THEY HAVE A WHOLE LOT MORE
ECONOMIC LEVERAGE AND POWER AND
MUCH BIGGER MILITARY.
THEN YOU HAVE MORE PROBLEMS DOWN
TRISH, YOU HAVE TO BRING ALL THE
ALLIES, THE U.S. IS NOT MAJORITY
OF THE WORLD ECONOMY.
THE NATURAL ALLIES ARE CANADA,
EUROPE, JAPAN, AUSTRALIA, OUR
NORMAL ECONOMIC ALLIES OF THE
ADVANCED COUNTRIES IN THE WORLD,
TOGETHER HAVE PROVEN IN THE PAST
FAIRLY EFFECTIVE GETTING CHINESE
TO CHANGE THEIR BEHAVIOR.
WE'RE DOING THE OPPOSITE.
TRISH: TPP 2.0.
>> THAT IS A STRATEGIC APPROACH.
TRISH: SOME KIND OF TRADE
AGREEMENT THAT WOULD FORCE
CHINA'S HAND?
ALL THE MAJOR ECONOMIES IN ASIA.
TRISH: TPP 2.0 IS WHAT I SAID.
IT WILL BE THE TRUMP TRADE
AGREEMENT.
THAT'S WHAT YOU WOULD LIKE TO
SEE?
SOMETHING SHOULD BE DONE, WOULD
YOU AGREE WITH THAT, AUSTAN?
GO THROUGH THE WTO PROCESS.
TRISH: THE WTO DOESN'T WORK.
FORGET THE WTO.
I WOULD RATHER SEE TPP 2.0
BEFORE THE WTO DOES ANYTHING.
>> YOU CAN GET MASSIVE IS FINES
BEHAVIOR.
>> I WANT SOMETHING FASTER.
>> BUT YOU NEED ALLIES.
THIS ISN'T FASTER.
THIS IS ASKING THE AMERICAN
PEOPLE TO PAY HIGHER TAXES IN
ORDER TO FUEL, A LURCHING NO
WE HAVEN'T MADE DEMANDS.
TRISH: WELL YOU KNOW, THE MARKET