Bloomberg Daybreak: Australia with David R. Kotok on Trade and China
Nov 20, 2019
David Kotok joins Bloomberg Daybreak: Australia to discuss the US-China trade relationship.
“Our view is, a full trade arrangement with China has eluded us; it’s gone. Businesses are now making decisions about location around the world. They’re changing what they’re doing. The United States is now collecting a sales tax on Americans, masquerading as a tariff. And the amount in the tariff is now paying approximately 1/4 of the interest bill on American borrowings and we have a rising deficit. And you hear the president say we’re collecting all this money. Well we are collecting it. Americans are paying it. And we see it in changes in prices. A washing machine costs 10 or 12 percent more than it did before the tariffs. So this is an unfolding story. I’m not sanguine about it and I believe markets are adjusting to the fact that this is a more permanent space. Which means pricing is different, location of businesses are different. And as that unfolds we go down first, we see it, and then there is the reallocation elsewhere.”
Watch online at the Bloomberg website. David starts around the 12:30 minute mark: www.bloomberg.com
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