Donald Trump and Kamala Harris sparred over China policy during the presidential debate hosted by ABC News on Tuesday night.
What Happened:Harris criticized Trump’s tariff policy, labeling it a “Trump sales tax” that would impose a 20% tax on everyday goods, affecting middle-class families. Trump defended his tariff plans, proposing additional duties of 60% to 100% on China, aiming to recoup costs from other countries.
Trump claimed his tariffs had generated “billions and billions of dollars” from China. He also noted that the Biden-Harris administration kept most of his tariffs on China, raising tariffs on $18 billion of Chinese goods in May, including semiconductors and electric vehicles.
Harris argued that Trump’s administration led to a significant trade deficit and "invited trade wars."
“Under Donald Trump’s presidency, he ended up selling American chips to China to help them improve and modernize their military. [He] basically sold us out when a policy about China should be in making sure the United States of America wins the competition for the 21st century.”
She emphasized the need for strong alliances and investment in American technology to win the global race in areas like AI and quantum computing.
Why It Matters: The debate over China tariffs is not just a policy issue but a significant point of contention in the 2024 presidential race. According to U.S. intelligence officials, foreign powers like Russia, Iran, and China have different stakes in the election outcome. Russia is reportedly attempting to sway voters towards Trump, while Iran favors Harris. China, meanwhile, is more focused on down-ballot races.
Trump has hinted at imposing a universal tariff on all goods imported into the U.S. if he returns to the White House. This could significantly impact the $3 trillion worth of goods imported annually. Trump could use the International Emergency Economic Powers Act (IEEPA) to control economic transactions and phase out imports of essential goods from China over four years.
Chinese social media users and former President Trump share a sentiment that Harris has a slim chance of winning the upcoming election. Discussions on platforms like Weibo suggest that Trump’s victory is almost certain, especially after a failed assassination attempt on him.
Regardless of who wins, both Harris and Trump are likely to continue the strategic decoupling from China. This could lead to Chinese companies outsourcing to Southeast Asia or Mexico to maintain their U.S. market share. Financial Analyst Shain Vernier noted that investors are concerned about extensive tariffs under Trump but expect a more passive approach from Harris.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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