i3 - July/August 2018 - 2

From the CEO

The solution to
unfair trade
practices is not
President
Trump's tariffs.

2

JULY/AUGUST 2018

Love him or hate him, President Trump
is shaking things up.
On trade he is doing what he promised.
He is renegotiating NAFTA. He is focusing on steel and aluminum dumping. He
is beating up China with tariffs for its mercantilist practices. And he walked away
from the Trans-Pacific Partnership agreement, probably still unaware that it was
created by several countries as a way of
competing with China.
At CTA, we are focused on the 25 percent tariffs that will go into effect on
July 6, and on the potential of billions
more in tariffs on imports from China
and elsewhere. The first $50 billion of
covered products includes lithium ion
batteries, thermostats and other consumer staples and has added special
challenges to vendors in Bentonville,
Arkansas; Minneapolis; Pennsylvania;
and Seattle who are planning the holiday season.
The solution to unfair trade practices is
not President Trump's tariffs. As French
President Emmanuel Macron (a fourtime CES attendee), told a joint session
of Congress in late April:

"We can build the right answers to
legitimate concerns regarding trade
imbalances, excesses and over-capacities
by negotiating through the World Trade
Organization... We wrote these rules. We
should follow them."
But like a proverbial bull in a "China"
shop, President Trump is oblivious to the
global economic uncertainty his harsh
threats and actions cause. The economic
boost he gave by cutting anti-business
regulation and by cutting taxes is threatened by the real prospect of a trade war
rocking the global economy.
While we can hope a peaceful resolution of the Korean situation also calms
our China relationship, we should prepare for turbulence in planning and markets. All stock market drops of over two
percent in a day that occurred during the
Trump presidency were tied to Trump
tariff actions. I expect President Trump's
tone to change as a gyrating stock market - combined with the dimming prospects for Republicans keeping control of
Congress in the November elections -
teach the president that our global interdependent trading system has rules we
agreed upon and should follow.
I am trying to view the glass as half full.

Gary Shapiro,
President and CEO
I T I S I N N O VAT I O N

Left to Right: Andrew Harrer/Bloomberg via Getty Images, Chip Somodevilla/Getty Images.

Trade and Trump



Table of Contents for the Digital Edition of i3 - July/August 2018

Contents
i3 - July/August 2018 - Cover1
i3 - July/August 2018 - Cover2
i3 - July/August 2018 - Contents
i3 - July/August 2018 - 2
i3 - July/August 2018 - 3
i3 - July/August 2018 - 4
i3 - July/August 2018 - 5
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