In today article we are going to discuss the dynamic relationships of the 3 biggest economic regional centres - the US, China and Europe. We look at Trump’s strategy and the world economic trends through the prism of Trump’s interview to Fox News.
In his exclusive interview with Fox, President Trump commented on China:
"We could cut off the whole relationship...By doing this it could help to save hundreds of billions of dollars."
Even some experts have classified those kinds of remarks as irresponsible and emotional, the whole interview is very remarkable. It reflects the consistent macroeconomic strategy aligned with the election slogan"Make America Great Again".
Trump’s administration is pushing the initiative to remove industrial supply chains from China and draws up plans to punish China over coronavirus outbreak.
"I'm very disappointed in China. I will tell you that right now.. We could do things in our country. We used to make our own product…. Probably is one of the main reasons I ran for president because I saw our that our car industry is leaving, going to Mexico. You know, Mexico makes 30% of our cars.”
So again, Trump emphasises on his intention to bring manufacturing back to the US.
What is the Trumps' strategy towards American companies? What’s about Apple?
“ We gave Apple a little bit of a break because they’re competing with a company that was a part of a trade deal that we made. So it was a little bit unfair to Apple, but we’re not allowing this anymore,” Trump said. “You know if we wanted to put up our own border like other countries do to us, Apple would build 100 per cent of its products in the United States. That’s the way it would work.”
Asked by Maria Bartiromo whether he would “consider giving companies tax breaks to return manufacturing operations to the US, Trump said he might tax them if they didn’t and suggested they had a duty to re-shore operations”. Trump said:
“One incentive, frankly, is to charge tax for them when they make product outside. We don’t have to do much for them. They have to do for us.”
Trump has clearly stated his intention to return the manufacturing back to the U.S.
To implement this initiative, of course, is not so simple task.