The U.S. President Donald Trump's tariff measures will only depress investment and create more uncertainty, an American political and economic affairs expert said in Beijing.
On Friday, Trump said he is open to negotiating with countries seeking to avoid U.S. tariffs but emphasized that talks will only begin after April 2, possibly after the announcement of additional tariffs.
Einar Tangen, a senior fellow at the Beijing-based think tank Taihe Institute, pointed out that Trump is using tariffs as bargaining chips to threaten other countries, in a Skype interview with China Global Television Network (CGTN) on Sunday.
"How many years have we heard the narrative that you cannot depend on China? That they'll use their economic heft to somehow corner you. Now it appears it's the U.S. that is the real danger,” said Tangen. “Trump's tactics have remained the same, but the world has changed. Trump is playing poker collectively, and his opponents have better cards. If they call his bluff, it's going to be over for him. Taking on the entire world was a mistake. Bullies usually focus on weaker opponents, using them as examples to frighten others."
Starting with steel, aluminum, and cars, and potentially extending to pharmaceuticals and wines, Trump claims he will secure all possible trade advantages for the U.S. The president argued that these tariffs would encourage more production to relocate to the U.S., generate new government revenue, and help reduce the national debt.
Tangen believes Trump's trade actions are a form of bluffing and will ultimately harm the U.S. economy and increase global uncertainty.
"He is bluffing. What he's doing is taking money out of American consumers' pockets, and he thinks he can dole it back to them, and they'll be somehow thankful. The U.S. has vulnerabilities in terms of inflation and collective tariff retaliation. Trump is taking money from one side, his own taxpayers, and then he thinks he can give it back to them as tariffs and that this will somehow be welcome. His effort to control the economy and reindustrialize America will only depress investment and create more uncertainty," said the senior fellow.
Trump's tariff measures will depress investment, increase uncertainty: expert
Trump's tariff measures will depress investment, increase uncertainty: expert
Los Angeles is grappling with rising costs and delays in its wildfire recovery process, as tariffs on construction materials imposed during the Trump administration compound the challenges.
The devastating wildfires recently destroyed over 17,000 homes and businesses, leaving communities urgently pushing forward with reconstruction.
The Trump administration has recently rolled out new tariffs on a wide range of construction materials, including steel and aluminum, from the main trading partners of the United States, such as Canada, Mexico, and China. This has significantly driven up costs, further complicating the recovery efforts
"As the city and county of Los Angeles move aggressively to rebuild the wildfire areas in Malibu, Pacific Palisades, and up in Altadena, to build those houses, we need softwood lumber, aluminum, and steel from Canada," said Gene Soroka, executive director of Port of Los Angeles.
While the tariffs aim to boost domestic production, the transition will take time. In the interim, the shortage of materials is creating ripple effects across the construction sector.
"We are still handling a lot of imported steel, despite the tariffs because there's not enough American manufacturing of steel right now. So, one of the unintended consequences that this has done the wrong way is you don't have enough steel. That impacts construction, that impacts economic growth across the board," said Weston Labar, chief strategy office of Waterfront Logistics.
According to the Associated General Contractors of America, housing costs could skyrocket by almost 50 percent, widening the gap between insurance payouts and actual rebuilding expenses. It may force many homeowners to delay or even abandon their reconstruction plans, prolonging the housing shortage in Los Angeles.
Tariffs are also driving up prices for other products, impacting recovery efforts.
"We need appliances from Mexico, furniture from China, and all of those prices are going up, whether anticipatory, or real as these imports are coming across our port complex. So, we've got to have some pretty detailed discussions about this because families who want to rebuild, businesses who want to get back into the office are going to be impacted by these tariffs one way or another," said Soroka.
As Los Angeles strives to recover, the economic uncertainty caused by tariffs presents a formidable obstacle.
Tariffs add strain to Los Angeles wildfire recovery efforts
