House Speaker Paul Ryan, R-Wisc., rejected President Trump’s latest trade policy efforts, warning of the potential harm tariffs could have on the U.S economy, according to an article written by Ana Edgerton for Bloomberg.
From the article:
“We risk having American products locked out of new markets, jobs moved overseas, and a decline in American influence,” Ryan said Thursday at the Economic Club of Washington. “As our generals will tell you, these agreements are just as important for our national security as they are for our economy.”
Ryan of Wisconsin, who plans to retire after this year, questioned Trump’s decision to pull out of Trans-Pacific Partnership, a multinational agreement to cut trade barriers. Ryan said the pact’s “broader intent was correct,” to counter China’s influence in the region and encourage development according to the U.S. model. Trump rejected the agreement, which was championed by former President Barack Obama.
Ryan said “bad actors” like China commit trade abuses, as Trump has asserted, but that new tariffs “are not the solution.”
The Trump administration recently imposed a 25% tariff on $34 billion in Chinese imports, and tariffs on another $16 billion are expected soon. This week, Trump threatened another 10% tariff on $200 billion in Chinese imports.
Trump’s looming trade war has the potential to negatively impact the housing market.
Increasing tariffs could force inflation to surge, resulting in climbing interest rates. This could force companies to pass increased costs to customers, potentially making mortgage rates more unaffordable for homebuyers.
Despite Ryan’s uneasiness, Trump has not announced any plans to ease his economic efforts.