On Tuesday’s broadcast of CNBC’s “Mad Money,” Commerce Secretary Gina Raimondo responded to a question on auto tariffs with China put in place by the Trump administration and using raising it to ensure American automakers have an even field or lowering it as a carrot or stick to change China’s behavior by stating that “We didn’t put those tariffs in place. We don’t think they make a whole lot of sense, in many cases.” And “China’s practices of subsidizing their businesses have hurt U.S. workers. So, we need a level playing field. Having said that, I think the Trump tariffs could’ve been much more strategic,” Raimondo also argued that “not decoupling our economy is critical, not just for our economy, but for our national security.”
Host Jim Cramer asked, “We have a 27% tariff on autos right now. If they play ball, we could cut that tariff, or if they don’t, would you raise that tariff and make it so that Ford, GM, and Chrysler have an even field? I know Ford’s very worried about the Chinese automakers.”
Raimondo responded, “So, President Biden’s been clear about this. We didn’t put those tariffs in place. We don’t think they make a whole lot of sense, in many cases. So, Katherine Tai, the USTR (U.S. Trade Representative) is, right now, doing a four-year review of the tariffs to see if they’re effective. I don’t think the administration will make any changes until that review is completed. Look, the reality is, China’s practices of subsidizing their businesses have hurt U.S. workers. So, we need a level playing field. Having said that, I think the Trump tariffs could’ve been much more strategic, and that’s why we’re doing this four-year review.”
Cramer then asked, “I do want to get to a philosophical issue, which is, I wonder whether we’re returning to a Cold War period. I feel sometimes relations have deteriorated to the point where it’s kind of like during the Tiananmen Square horror. Do we have a technological Cold War? Do we just have bad relations right now? Morris Chang — Godfather of all semis from TSMC and a man I idolize — has talked about the possibility that they could do a blockade. Do we have to send the 7th Fleet, the 82nd Airborne, what is — if we spiral, how do we stop?”
Raimondo answered, “That’s why I went to China, number one is communication. Even in the depths of the Cold War with Russia, we had communication, dialogue, backchannel. It’s absolutely critical. It’s also why I went to places like Disney and Boeing, American soft power in the form of our great brands can help to de-escalate. There [are] over a thousand Starbucks in Shanghai and growing. So, not decoupling our economy is critical, not just for our economy, but for our national security. So, I think there’s no easy answer. People ask me, do I trust China? No. But we have to have a stable relationship. We have to be practical, we have to do business where we can, communicate and have dialogue where we can, and never compromise our national security. It’s not simple, but we can do it, and if we do all of that, we, I think, can manage the conflict to a place of, there will always be tension, but not hot conflict.”
Follow Ian Hanchett on Twitter @IanHanchett
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