Welles Orr Comments on Possible U.S.-China Trade Agreement on Fox News
"Is China a Threat to the U.S. Economy?"
Welles Orr commented on the possibility of a trade agreement between the U.S. and China, and thinks the two countries will reach an agreement soon. While some say China is not competition to the U.S. economy, "China is the big 600-pound gorilla for taking on our economy," Orr said, "and hence the reason why President Trump's administration is taking these [section] 301 actions and pressing the Chinese for a trade deal." Trump, who is scheduled to meet with Chinese President Xi Jinping at the 2019 G20 Osaka Summit in Japan in late June, said he expects to reach a trade deal with China in three to four weeks, and Orr is optimistic that will happen. "I think it's a realistic possibility. We're just coming off a roller coaster week of trade developments" with China, but talks are continuing so "I am optimistic that that three to four week time frame up to the G20 is a time frame that they can possibly reach a deal," he said. Although big box retailers and Trump disagree on whether or not U.S. consumers will end up paying for tariffs if enacted this summer, Orr said consumers will take the hit. "Consumers will pay the increased cost because what the tariffs are, in effect, are taxes, and tariffs hit consumers because producers raise costs when they are hit with paying those higher taxes at the border," he said. "That's just the reality."