Former Goldman Sachs Opens a New Window. CEO Lloyd Blankfein is backing President Trump’s Opens a New Window. tariffs on China Opens a New Window. as a tool to pressure the Asian nation Opens a New Window. into a trade agreement with the U.S. Opens a New Window.
“Tariffs might be an effective negotiating tool. Saying it hurts us misses the point. China relies more on trade and loses more,” he tweeted on Tuesday evening.
Amid warnings from corporate America, Main Street businesses, economists and others that Trump’s tariffs on China will increase costs for U.S. consumers, Blankfein said they could “eventually switch their purchases to domestic or non-Chinese companies” or pay more as “part of the process to assert pressure to level the playing field.”
China’s economic success is largely pegged to its exports and the country ships far more goods to the U.S. than it imports.
Trump capitalized on the discrepancy in pushing forward with tariffs on $250 billion of Chinese goods, as well as the potential for another $300 billion in products, to exert pressure on President Xi Jinping to make significant concessions in the ongoing trade talks.