An economist who believes that Chinese goods are literally poisoning Americans, advocates ending Washington’s “One China” policy and says trade deals have weakened the United States economically with the connivance of U. S. business has emerged as the big winner from renewed turmoil in the White House.
WASHINGTON (Reuters) – An economist who believes that Chinese goods are literally poisoning Americans, advocates ending Washington’s “One China” policy and says trade deals have weakened the United States economically with the connivance of U. S. business has emerged as the big winner from renewed turmoil in the White House.
While Peter Navarro says he is not in the running to replace Trump’s top economic adviser Gary Cohn, who has said he will quit, he will be a big winner from the departure of a person seen as a bulwark against economic protectionism.
Sidelined under Cohn to whom he has reported since late last year, Navarro, who is Trump’s trade adviser, would now appear to have free rein. He has publicly backed Trump’s proposed steel and aluminum tariffs in a series of media appearances after being out of the public eye for months.
Navarro has endorsed withdrawal from the North American Free Trade Agreement as well as from a trade deal with South Korea. He believes the World Trade Organization allows unfair tax practices like value added tax that penalize American business.
But his main target has been China. He has backed a 45 percent tariff on imports from China to combat what he says is Beijing’s policy of illegal export subsidies, currency manipulation, intellectual property theft and lax worker safety and environmental regulations.
He has challenged Washington’s “One China” which recognizes Beijing and not Taipei diplomatically.
“Just as these Chinese leaders have been exploiting American
weakness by cheating in the trade arena, they will acknowledge the strength and resoluteness of Trump and rein in their mercantilist impulses,” Navarro and now-Commerce Secretary Wilbur Ross wrote in an economic paper for the Trump 2016 election campaign.
Trump said on Wednesday he had demanded action from China on trade that appeared to align with Navarro’s policies. Treasury Secretary Steve Mnuchin also chimed in on taking action on China, telling Fox Business Network the United States would get “reciprocal trade with China.
