Claim: Minnesota Governor Tim Walz (D) claimed then-President Donald Trump lost the trade war with China.
Verdict: False. Indeed, Mr. Trump won the trade war, raised tariffs without raising prices, and demonstrated the resilience of the U.S. economy.
Walz attacked President Trump's trade policies during the CBS News vice presidential debate in New York City on Tuesday. But he used false talking points that distort the history of what actually happened with Trump's tariffs.
Many conservatives accustomed to free trade policies were skeptical that President Trump had waged a trade war with China by raising tariffs on various Chinese products. Economists predicted inflation. Experts said Trump was making a mistake.
The opposite happened. Prices were stable. Inflation remained low. China retaliated, but U.S. producers held on, and the Trump administration provided aid to farmers hit by retaliatory commodity tariffs. Most importantly, China's economy began to weaken as producers absorbed the cost of tariffs to keep export prices low. Mr. Trump did indeed win the trade war, proving that trade can be an effective tool for national security and diplomacy.
Incidentally, Trump has done the same thing with other countries. When he threatened Mexico with trade implications, Mexico agreed to stop migrant caravans at its southern border. After he exempted Mexico and Canada from tariffs imposed on other countries, the two countries agreed to abandon NAFTA for a new U.S.-Mexico-Canada trade deal.
By the end of 2019, China had agreed to sign a new “Phase 1” trade agreement with the United States, building trade on a new and more favorable foundation. There are two reasons why this agreement has been overshadowed. One is that the Democrats impeached Trump. And second, China allowed the coronavirus to escape from its Wuhan lab and spread around the world. But Trump won the trade war by extracting concessions from China while protecting American industry and American agriculture.
Joel B. Pollack is a senior editor at Breitbart News. Breitbart News Sunday Sunday nights from 7:00 PM to 10:00 PM ET (4:00 PM to 7:00 PM PT) on Sirius XM Patriot. he is the author of Agenda: What should President Trump do in his first 100 days?available for pre-order on Amazon. He is also the author of Trumpian Virtues: Lessons and Legacy of the Donald Trump Presidencynow available on Audible. He is the recipient of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter @joelpolak.
