Stock losses accelerate as Wall Street gets tariff whiplash - CNN

The Dow (DJIEW), S&P 500 (SPX) and Nasdaq (COMP) were all solidly in the red. The Dow was more than 300 points lower after about an hour of trading. The S&P 500 was down 1.3%% and the Nasdaq fell 1.3%, also both adding to their earlier losses.

On Sunday, President Donald Trump threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Monday's selloff started with the Dow opening sharply lower, but stocks recovered most of their losses yesterday as trading went on. Investors took some comfort after Chinese Vice Premier Liu said he remains scheduled to travel to the US this week.

"Markets appear to be holding on to hope that US-China trade negotiations will not be derailed, amid reports that this week's trade talks in Washington will still take place," said Han Tan, Market Analyst at FXTM.

Many have weighed whether the presidential tweet was just a negotiation tactic. Analysts at Bank of America believe that both parties at the table remain motivated to agree a deal.

Speaking to reporters on Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous agreements over the weekend, undermining progress towards a detailed trade agreement between the world's two largest economies.

Lighthizer, the top US trade negotiator, said the administration would increase penalties on $200 billion of Chinese goods to 25% from 10% on Friday. Trump renewed his threat to raise tariffs on Sunday.

"That assumption is likely to be tested sooner rather than later, and the initial optimism that Trump's truculence was bluster was tempered somewhat by trade representative Robert Lighthizer's claims that China had backpedalled on certain elements on what had already been agreed," said Michael Hewson, chief market analyst at CMC.

European stocks are broadly lower. Asian markets ended their day mixed, with the Shanghai Composite (SHCOMP) closing 0.7% higher, retracing some of its 5.6% drop on Monday, according to Refinitiv.

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2019-05-07 14:21:00Z
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Dow opens 200 points lower as Wall Street gets tariff whiplash - CNN

The Dow (DJIEW), S&P 500 (SPX) and Nasdaq (COMP) were all solidly in the red. The Dow was more than 300 points lower after about an hour of trading. The S&P 500 was down 1.3%% and the Nasdaq fell 1.3%, also both adding to their earlier losses.

On Sunday, President Donald Trump threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Monday's selloff started with the Dow opening sharply lower, but stocks recovered most of their losses yesterday as trading went on. Investors took some comfort after Chinese Vice Premier Liu said he remains scheduled to travel to the US this week.

"Markets appear to be holding on to hope that US-China trade negotiations will not be derailed, amid reports that this week's trade talks in Washington will still take place," said Han Tan, Market Analyst at FXTM.

Many have weighed whether the presidential tweet was just a negotiation tactic. Analysts at Bank of America believe that both parties at the table remain motivated to agree a deal.

Speaking to reporters on Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous agreements over the weekend, undermining progress towards a detailed trade agreement between the world's two largest economies.

Lighthizer, the top US trade negotiator, said the administration would increase penalties on $200 billion of Chinese goods to 25% from 10% on Friday. Trump renewed his threat to raise tariffs on Sunday.

"That assumption is likely to be tested sooner rather than later, and the initial optimism that Trump's truculence was bluster was tempered somewhat by trade representative Robert Lighthizer's claims that China had backpedalled on certain elements on what had already been agreed," said Michael Hewson, chief market analyst at CMC.

European stocks are broadly lower. Asian markets ended their day mixed, with the Shanghai Composite (SHCOMP) closing 0.7% higher, retracing some of its 5.6% drop on Monday, according to Refinitiv.

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2019-05-07 13:57:00Z
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Royal baby: Prince Harry beams as he announces birth of son - CBS This Morning

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2019-05-07 11:49:25Z
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'We're freaked': Trump startles US businesses with fresh tariff hike - CNN

Importers received just five days' notice about the sudden rise in the tariff rate to 25% from 10%.

Phil Page, the CEO of Missouri-based Cap America, estimates that his company has more than $1 million worth of baseball hats already ordered that will now be hit with the higher tariff.

"It's very difficult to understand what the President is going to do by a business perspective. To spring it on us all at once like this is a very poor judgment on his part," Page said.

"I thought this thing was going to be worked out this week," he added.

The President himself told reporters on Friday that "the deal itself is going along pretty well" and a delegation of Chinese negotiators are scheduled to arrive in Washington this week.

But Trump reversed course on Sunday, threatening to raise the tariff rate. On Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin confirmed the administration would be moving forward with the tariff escalation on Friday, saying that China reneged on previous agreements over the weekend.

Trump imposed three rounds of tariffs last year. The third and biggest tranche on $200 billion of Chinese goods went into effect in September. But the President threatened to escalate the tariff rate to 25% from 10% on January 1 if progress wasn't made on a new trade deal -- and then pushed the deadline to March 1.

When the second date came and went, it appeared trade tensions were easing up and businesses adjusted to the new normal.

"I thought we were finally figuring out how to make this work, and now we have to start all over," said Tiffany Zarfas Williams, owner of the Luggage Shop of Lubbock in Texas.

About 84% of the luggage, backpacks and briefcases she sells were hit with tariffs. Earlier in the year, she would receive emails from vendors on a daily basis about price increases. Zarfas Williams raised her own prices accordingly, and adjusted the assortment of items on the floor.

But by Monday afternoon, she had already received a new email from one of her biggest vendors reminding her that a higher tariff would result in a higher price.

Sales of the higher-end items at Luggage Shop of Lubbock have already taken a hit and adding another 15% to the price would be "a whole new ballgame," she said.

Trump's top trade negotiators on Monday brushed off criticism that US businesses and executives were not given sufficient notice ahead of plans to escalate tariffs on $200 billion of Chinese goods.

"The fact is that we've been in a position where that very well could happen," Lighthizer told reporters at a briefing. He also opened the door to possible exemptions but did not offer any further details.

The message was echoed by Mnuchin.

"It's obviously been a big time commitment, so I would just emphasize that nothing that's been done has been on short notice," he said. "Although certain expectations may have changed over the last week from the other side."

Trump has repeatedly claimed that China pays the tariffs. While some Chinese companies may choose to eat some of the cost in order to remain competitive in the US market, several recent research papers show that American consumers and producers take on most of the burden.

The business community generally agrees that the United States should take a tougher stance on trade with China to address what it sees as unfair trade practices, like intellectual property theft and forced technology transfers. But they don't all agree that tariffs are the best way to bring Beijing to the negotiating table.

"I definitely want China to be held accountable, but I don't know why we are punishing consumers in our own country. That's the part that's hard to understand as a small business owner in Texas," Zarfas Williams said.

About 75% of good-producing firms recently surveyed by the National Association for Business Economics said the tariffs have had a negative impact on their business.

Trump administration officials said Monday that the administration would also move forward with a process to impose new tariffs on additional Chinese goods. Trump had floated the idea over the weekend to slap duties on another $325 billion of imports, which would result in a tax on most -- if not all -- Chinese goods coming into the United States.

The administration strategically put the earlier tariffs on imports mostly used in the production of other items, like semiconductors or refrigerators. That means the next round could tax more items that are directly sold to consumers

New tariffs would hit the core of clothing and footwear imports, said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association.

"That's why we're freaked," he said.

A significant portion of hats, luggage, clothing and shoes sold in the United States come from China, leaving importers with little choice to source items from elsewhere in the short-term. Other countries don't have the capacity to take on more production immediately.

"This confirms our worst fears. There are those of us who are optimists and thought it would go away and those who say it could come back at any time -- and this points to the latter," Helfenbein said.

CNN's Donna Borak contributed reporting to this story.

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2019-05-07 10:03:00Z
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'We're freaked': Trump startles US businesses with fresh tariff hike - CNN

Importers received just five days' notice about the sudden rise in the tariff rate to 25% from 10%.

Phil Page, the CEO of Missouri-based Cap America, estimates that his company has more than $1 million worth of baseball hats already ordered that will now be hit with the higher tariff.

"It's very difficult to understand what the President is going to do by a business perspective. To spring it on us all at once like this is a very poor judgment on his part," Page said.

"I thought this thing was going to be worked out this week," he added.

The President himself told reporters on Friday that "the deal itself is going along pretty well" and a delegation of Chinese negotiators are scheduled to arrive in Washington this week.

But Trump reversed course on Sunday, threatening to raise the tariff rate. On Monday, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin confirmed the administration would be moving forward with the tariff escalation on Friday, saying that China reneged on previous agreements over the weekend.

Trump imposed three rounds of tariffs last year. The third and biggest tranche on $200 billion of Chinese goods went into effect in September. But the President threatened to escalate the tariff rate to 25% from 10% on January 1 if progress wasn't made on a new trade deal -- and then pushed the deadline to March 1.

When the second date came and went, it appeared trade tensions were easing up and businesses adjusted to the new normal.

"I thought we were finally figuring out how to make this work, and now we have to start all over," said Tiffany Zarfas Williams, owner of the Luggage Shop of Lubbock in Texas.

About 84% of the luggage, backpacks and briefcases she sells were hit with tariffs. Earlier in the year, she would receive emails from vendors on a daily basis about price increases. Zarfas Williams raised her own prices accordingly, and adjusted the assortment of items on the floor.

But by Monday afternoon, she had already received a new email from one of her biggest vendors reminding her that a higher tariff would result in a higher price.

Sales of the higher-end items at Luggage Shop of Lubbock have already taken a hit and adding another 15% to the price would be "a whole new ballgame," she said.

Trump's top trade negotiators on Monday brushed off criticism that US businesses and executives were not given sufficient notice ahead of plans to escalate tariffs on $200 billion of Chinese goods.

"The fact is that we've been in a position where that very well could happen," Lighthizer told reporters at a briefing. He also opened the door to possible exemptions but did not offer any further details.

The message was echoed by Mnuchin.

"It's obviously been a big time commitment, so I would just emphasize that nothing that's been done has been on short notice," he said. "Although certain expectations may have changed over the last week from the other side."

Trump has repeatedly claimed that China pays the tariffs. While some Chinese companies may choose to eat some of the cost in order to remain competitive in the US market, several recent research papers show that American consumers and producers take on most of the burden.

The business community generally agrees that the United States should take a tougher stance on trade with China to address what it sees as unfair trade practices, like intellectual property theft and forced technology transfers. But they don't all agree that tariffs are the best way to bring Beijing to the negotiating table.

"I definitely want China to be held accountable, but I don't know why we are punishing consumers in our own country. That's the part that's hard to understand as a small business owner in Texas," Zarfas Williams said.

About 75% of good-producing firms recently surveyed by the National Association for Business Economics said the tariffs have had a negative impact on their business.

Trump administration officials said Monday that the administration would also move forward with a process to impose new tariffs on additional Chinese goods. Trump had floated the idea over the weekend to slap duties on another $325 billion of imports, which would result in a tax on most -- if not all -- Chinese goods coming into the United States.

The administration strategically put the earlier tariffs on imports mostly used in the production of other items, like semiconductors or refrigerators. That means the next round could tax more items that are directly sold to consumers

New tariffs would hit the core of clothing and footwear imports, said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association.

"That's why we're freaked," he said.

A significant portion of hats, luggage, clothing and shoes sold in the United States come from China, leaving importers with little choice to source items from elsewhere in the short-term. Other countries don't have the capacity to take on more production immediately.

"This confirms our worst fears. There are those of us who are optimists and thought it would go away and those who say it could come back at any time -- and this points to the latter," Helfenbein said.

CNN's Donna Borak contributed reporting to this story.

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2019-05-07 09:44:00Z
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Meghan Markle will quickly return to work after giving birth, is 'enjoying' media attention, says royal expert - Fox News

Meghan Markle will likely head back to work sooner than we think after giving birth to her first child.

The former American actress and Britain’s Prince Harry welcomed a baby boy early Monday morning. A rep from Buckingham Palace said it is up to the couple when will the public learn of the newborn’s name or see his first photo.

WHO WILL BE GODPARENTS TO MEGHAN MARKLE'S ROYAL BABY?

"We are pleased to announce that Their Royal Highnesses The Duke and Duchess of Sussex welcomed their firstborn child in the early morning on May 6th, 2019. Their Royal Highnesses’ son weighs 7lbs. 3oz.," the couple announced via Instagram.

"The Duchess and baby are both healthy and well, and the couple thank members of the public for their shared excitement and support during this very special time in their lives. More details will be shared in the forthcoming days," the statement said.

But one other birthday Markle won’t miss is that of Queen Elizabeth II. The reigning monarch, 93, celebrates two birthdays each year — her actual birthday on April 21 and her official birthday, which is usually observed the second Saturday in June.

While Elizabeth usually spends her actual birthday privately, she is joined by other members of the royal family on her official birthday for the high-profiled Trooping the Colour parade, as well as a public appearance on the balcony of Buckingham Palace.

WHAT WILL MEGHAN MARKLE, PRINCE HARRY NAME THEIR SON?

“She will be back in time for Queen Elizabeth’s birthday, which is only weeks away,” royal filmmaker Nick Bullen told Fox News. “It was also announced she is going to be taking a very short maternity leave because she wants to get back to her charity work as quickly as possible. She’s aware of the media attention she possesses and she’s not afraid to use it.”

Bullen is an executive producer who has been making programs about the British royal family for nearly 20 years and has worked closely with Harry and William’s father, Prince Charles, for eight. Bullen has recently released two new films on True Royalty TV titled "Meghan Markle: Inside the Wardrobe of a Princess" and "Meghan Markle: Inside the Home of a Princess," documenting how the former "Suits" star has made her mark since officially becoming a member of the British royal family.

Bullen said that unlike her late mother-in-law, Princess Diana of Wales, Markle isn’t overwhelmed by the growing media spectacle surrounding her life. In fact, she’s embracing it as part of her new role.

“My understanding from people who know her well and work with her, she’s handling it very well,” Bullen shared. “She knew what she was marrying into. This is not a girl who was unaware of the power of the press. I think unlike a 19-year-old Lady Diana Spencer from all those years ago, who was overwhelmed with the attention, Meghan knew what she was getting into. I think it was possibly bigger than what she realized, but my understanding from people who knew her years ago and people who are working with her now, she’s handling it very well. In fact, she’s enjoying it. This is what she thrives on.”

Queen Elizabeth II, Meghan, Duchess of Sussex, Prince Harry, Duke of Sussex watch the RAF flypast on the balcony of Buckingham Palace, as members of the Royal Family attend events to mark the centenary of the RAF on July 10, 2018 in London. (Chris Jackson/Getty Images)

MEGHAN MARKLE WELCOMES FIRST CHILD: IT'S A BOY!

Bullen said Markle has become so welcoming of the press because it allows her to promote her charities on a global scale. Since becoming an official member of the British royal family, the former “Suits” star has become a patron of four royal organizations, with of her roles taking over from Elizabeth.

In January of this year, Kensington Palace announced Markle will serve as the patron for the National Theatre, as well as the Association of Commonwealth Universities, the Mayhew (animal welfare) and Smart Works, which empowers women and helps them find work.

“I’m told she and Harry have got some big key messages that they want to get out there,” said Bullen. “And the only way to get them out there is using the world’s press to their attention. As much as Harry is pretty anti-press, I think Meghan is enjoying it and ready to harness it. She wants to use it to promote brand Sussex.”

Meghan Markle and Prince Harry are reportedly keeping the birth of Baby Sussex private. (Getty)

Bullen shared that the one challenge Markle may face is for her husband to embrace the media as much as she has.

MEGHAN MARKLE'S FATHER SPEAKS OUT AFTER BIRTH OF ROYAL BABY

“Harry’s real beef is with the British press,” he explained. “He felt they treated his mother badly. He also believes the British press treated him badly while he was growing up as a teenager in the public eye. I think Harry will not particularly want to work with the British press, but he will work with the foreign press and in particular, the American press. It’s no surprise that his next big TV project is with Oprah Winfrey and Apple. I think you will see him more on the global stage, not so much the domestic stage.”

“I think Harry has to become more welcoming of the press,” Bullen continued. “Because you know what? It ain’t going away. He needs to work with it. I think Meghan will hopefully encourage him in that direction… I think they will start working much more with the international press. They will definitely use social media in a much bigger way.”

Meghan Markle and Prince Harry in Fiji in October 2018 (Getty)

Still, Bullen pointed out Markle and Harry will use the power they have over the press on their own terms. The couple recently left Kensington Palace for Frogmore Cottage on Elizabeth’s estate. The move will separate the duo from Harry’s older brother Prince William and his wife, Duchess of Cambridge Kate Middleton. And the move, he insisted, is not a surprising one.

“Harry and Meghan will want to use their home as a really private sanctuary,” he explained. “Meghan’s mind frame is, ‘Let’s get out. Let’s do what we can for Sussex, for Britain and for the causes that we believe in. But when we go home, we are absolutely private.’ That’s why Frogmore, their new home, is perfect for them…. Nobody can get near it. It is surrounded by a big wall. Kensington Palace is pretty open and accessible to people. But Frogmore is private. And I think that’s what Meghan loves. She loves the idea of retreating and hiding away from the world when she can.”

WILL ROYAL BABY END FEUD?

Harry and Markle's royal bundle of joy, born at 5:26 a.m., is seventh in line for the British throne and is Queen Elizabeth II's eighth great-grandchild. Harry is the younger son of Prince Charles, the next in line to the throne.

Duchess of Sussex Meghan Markle (Getty)

A beaming Harry told reporters at Windsor Castle on Monday that both mom and baby are doing well.

"I'm very excited to announce that Meghan and myself had a baby boy early this morning, a very healthy boy," the new dad shared. "Mother and baby are doing incredibly well. It's been the most amazing experience I could ever possibly imagine. How any woman does what they do is beyond comprehension but we're both absolutely thrilled and so grateful to all the lovely support."

Fox News' Sasha Savitsky contributed to this report.

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2019-05-07 09:00:54Z
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China Trade Talks Shaped By President Trump's Divided Advisers - NPR

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A magazine's cover line in Beijing asks, "How will Trump the businessman change the world?" on Dec. 28, 2016, days after then President-elect Donald Trump tapped outspoken China critic Peter Navarro for a top trade position. Greg Baker/AFP/Getty Images hide caption

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Greg Baker/AFP/Getty Images

President Trump escalated the trade fight with China this week, saying he will steeply increase tariffs on Chinese products this Friday.

But while the White House projects a unified front in favor of wielding tariffs as a weapon against China, it wasn't always this way.

Early in Trump's presidency, close advisers fought bitterly over whether tariffs would help — or devastate — the U.S. economy, those advisers told NPR and the PBS show Frontline.

This story is part of a joint investigation with the PBS series Frontline, which includes an upcoming documentary, Trump's Trade War, scheduled to air May 7 on PBS.

"If you take all the other nastiness on the things like the Paris accord and the [Trans-Pacific Partnership agreement] ... roll it up and put it to the factor of 10, they don't compare to these weekly nasty trade meetings," said Steve Bannon, Trump's former chief strategist.

"These arguments would get quite personal," Bannon added.

And the disagreements weren't just behind closed doors.

"They were having fights in front of the Chinese delegation, which is like a cardinal sin of negotiating," says Susan Thornton, former acting assistant secretary of state for East Asian and Pacific affairs.

As for the president, he has long railed against China and its trade relationship with the United States, calling the U.S.-China trade deficit "the greatest theft in the history of the world." On the campaign trail, he frequently offered tariffs as a way to rebalance trade with China and revive American manufacturing jobs.

"We can't continue to allow China to rape our country, and that's what they're doing," Trump said in one typical speech before an energized crowd at a 2016 campaign rally in Indiana.

Bannon says the message connected viscerally with Trump's core supporters.

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During a campaign stop in Fort Wayne, Ind., on May 1, 2016, Trump, then the Republican presidential candidate, criticized U.S. relations with China, saying the United States "can't continue to allow China to rape our country." Darron Cummings/AP hide caption

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Darron Cummings/AP

"You could tell in sitting in the audience when he started talking about trade, when he started talking about China, these working-class people would lean forward," Bannon says. "No other Republican talked like this."

Still, when Trump was elected, he assembled a team of advisers who were not always in agreement about how to confront China. And the group quickly splintered, deadlocked over whether tariffs would bring China to heel — or send the world's two largest economies into turmoil.

In one camp, which came to be called the nationalists, were pro-tariff advisers like Bannon and Peter Navarro, a hawkish economist. Opposing them were the globalists, including economic adviser Gary Cohn and Army Lt. Gen. H.R. McMaster, then Trump's national security adviser.

"We agreed on what the fundamental issue was," says Cohn, former president and chief operating officer of Goldman Sachs. "We agreed that the forced technology transfer, the lack of market access, the copyright infringements was all a huge problem. What I think we had different methodologies on is how we were going to solve that problem."

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Gary Cohn, then director of the National Economic Council, listens during a Feb. 13, 2018, meeting between President Trump and members of Congress to discuss trade. Alex Wong/Getty Images hide caption

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Alex Wong/Getty Images

Cohn believed that heavy tariffs would hurt the U.S. — that they would make the Chinese products that Americans buy more expensive and that business growth would slow as a result. He and other globalists wanted to partner with other countries to confront China with powerful alliances.

Bannon and Navarro wanted to use tariffs to force China to the table and end long-standing issues of theft and unfair practices. They believed higher prices on Chinese goods would protect U.S. jobs and bring back manufacturing.

Bannon says there was no room for compromise.

"A couple of times we had blowups. I mean, there was a blowup in the Oval Office," he says. "[Navarro] pulls out one of his charts, which the president loves. The next thing you know, we had this big blowup. We had to exit and go back into the Roosevelt Room."

Cohn accused the nationalists of using glossy charts and pictures to make their case with the president, instead of using actual data.

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Steve Bannon, then President Trump's chief strategist, listens as Trump speaks on April 20, 2017, before signing a memorandum on the investigation of steel imports. Mark Wilson/Getty Images hide caption

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Mark Wilson/Getty Images

"From time to time, there were people that tried to use unfootnoted, undocumented facts," Cohn says. "It's my job to get rid of the undocumented, unfootnoted facts and make sure that those don't enter the Oval Office."

Navarro declined NPR and Frontline's request for an interview.

McMaster says everyone in the room was concerned from the beginning about the economic threat China posed.

"The president's eyes were wide open and so were all the members of his cabinet," McMaster says.

But some of the disagreements are still raw. When told what McMaster said about Trump's advisers being clear minded on China, Bannon responded, "That is a total and complete lie."

"I fought that guy every day," Bannon says of McMaster. "I don't want to hear his nonsense now that he realizes he was on the wrong side of history."

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Navarro, director of the Office of Trade and Manufacturing Policy, presents charts showing job numbers to Trump on Jan. 31, 2019. Mark Wilson/Getty Images hide caption

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Mark Wilson/Getty Images

By the end of 2017, when Trump and his team had begun trade negotiations with their Chinese counterparts, the discord was seeping well outside the White House.

Thornton, who has served under 10 secretaries of state, says trying to present a strong, unified front to the Chinese when White House advisers were fighting internally — and externally — was one of the hardest assignments of her career.

"It makes it look like your delegation doesn't know what it's doing and that the leader doesn't have sufficient authority to negotiate. But that was happening," Thornton says. "You can't have this team that's fighting with itself. That's a big disadvantage."

Bannon says it doesn't matter if the Chinese knew top officials weren't on the same page. He intended to win.

"We came loaded," he says. "The most intense fights and debates in the White House, OK, were about this issue of tariffs, but tariffs as a proxy to the great economic war with China that we were engaged in."

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Navarro, Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and other Trump administration officials sit down with Chinese senior officials for trade negotiations at the Eisenhower Executive Office Building on Jan. 30, 2019. Chip Somodevilla/Getty Images hide caption

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Chip Somodevilla/Getty Images

For Bannon and the other nationalists, the effort paid off. In March 2018, Trump announced tariffs on steel and aluminum, and six months later he imposed additional tariffs on $200 billion in Chinese goods.

Cohn accepted defeat.

"Did I feel like I had represented the nontariff side of the equation for many people in the White House that didn't want tariffs?" he asked. "I did. I felt like I had done everything I can. It's no different than if you play a sport and you lose a game. If you left it all out on the field, you feel OK. I felt like I had given it my best effort."

But he says the White House globalists aren't the only ones who lost.

"Who I think lost was the United States consumer," he says. "Someone's paying the tariff. Whoever's paying the tariff is the loser. For every dollar of tariff that's collected, it's coming out of disposable income of the United States consumer today."

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Trump and Chinese President Xi Jinping walk together after their meetings at Mar-a-Lago on April 7, 2017, in Palm Beach, Fla. Alex Brandon/AP hide caption

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Alex Brandon/AP

Cohn left the White House less than a week after the steel tariffs were announced. In the weeks and months that followed, McMaster left his job, and Thornton left her post at the State Department. Bannon had already resigned in 2017, after clashing with other members of Trump's team.

Economists say it's too soon to know the tariffs' impact. So far, the trade deficit with China has only grown. But Bannon says he and other like-minded nationalists were always thinking beyond mere economic indicators.

"I think ultimate success is regime change [in China], and I realize in that regard I'm considered a radical," Bannon says. "I think the goal into China is quite simply ... to break the back of this totalitarian mercantilist economic society."

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2019-05-07 09:01:00Z
52780286811892