Amid China trade fight, Trump signals support for new tax cuts

ajc.com

Pushing back against questions about the strength of the U.S. economy, President Donald Trump on Tuesday said the White House is looking at the possibility of tax cuts - including cutting payroll taxes for working Americans - as a way to funnel more money to consumers, and spur new growth.

"Payroll tax is something that we think about, and a lot of people would like to see that," the President told reporters in the Oval Office, a day after some officials had said it was not an option.

But while the President indicated his support for tax relief, he also once more pointed the finger at the Federal Reserve, again jawboning the Fed for another interest rate cut.

"And if they would do a meaningful cut - because they raised too fast - you would see growth like you've never seen in this country," Mr. Trump said, in yet another verbal jab at Jay Powell, the head of the Federal Reserve.

Asked about the ongoing trade fight with China, the President acknowledged that there could be short term economic pain for some U.S businesses - but he said it's a battle which cannot be delayed any longer.

"Whether it's good or bad short term is irrelevant," Mr. Trump said. "We have to solve the problem with China."

"You should be happy that I'm fighting this battle," the President told reporters, as he said too many past Presidents had taken the easy way out by not confronting Beijing over unfair trade practices.

The President said he still believes the U.S. is in a strong negotiating position, as a new 10 percent tariff will go into effect on September 1 against an array of imports.

Mr. Trump last week though delayed some of those new tariffs on certain electronics like cell phones and video games, after being warned the import duties could cause lower holiday sales.

About the Author