Rep Steve Scalise (R) - LA
Many economists are warning that a new round of tariffs set to kick in in December between the US and China may set off a global recession.
House Minority Whip and Louisiana Congressman Steve Scalise says the global economy would bright up and recession fears would recede if the Chinese were to accept a fair trade deal with the US.
“With tariffs right now you are seeing some trade problems and I think the trade battles are the one thing holding back the economy, specifically as it relates to China.”
The chief economist for Morgan Stanley warns the recession could begin six to nine months after the tariffs take effect.
Scalise backs the President’s trade war and says the short-term disruption to the economy is necessary to make up for decades of trade inaction on the China issue.
“We’re going to have to have a battle with China, it’s been coming for a long time. They don’t play by any set of rules, they cheat, and they steal our intellectual property, and that’s not something that any other country gets away with.”
The December tariffs will raise rates on 250 billion dollars worth of Chinese goods to 30%, and 300 billion dollars worth of Chinese goods to 10 percent. China has vowed equitable retaliation.
Negotiations with China on a long-term trade deal recently collapsed. Scalise says it’s been difficult to get the People’s Republic to stay committed on any details.
“With China they will agree to anything, but they won’t follow the rules, they won’t play by the rules that they agreed to. So the question is, how do you hold them accountable, and what kind of enforcement mechanisms do you have in a trade deal?”
The comments come from an interview with WWL Radio.
