Larry Summers: No question Trump blinked on China tariffs
Former Treasury Secretary Larry Summers said Monday that there was no question that President Trump blinked when it came to the recent agreement on a 90-day pause between the United States and China on most retaliatory tariffs imposed on each other since early last month.
'I think it's very clear that it's President Trump who blinked,' Summers told CNN's Kasie Hunt on 'The Arena,' 'We had said that we were determined to impose these policies for an indefinite period.'
'China didn't make any consequential or significant change in its policies,' he added.
On Monday, China and the U.S. said they had agreed to a 90-day pause on most retaliatory tariffs imposed on each other beginning in early April. In a joint statement overnight, the two countries vowed to continue working in the direction of a lasting trade deal while bringing down tariffs for now.
Due to the agreement, the U.S. dropped its tariff rate for Chinese imports to 30 percent from 145 percent, while China agreed to bring down its tariff rate to 10 percent from 125 percent.
'Now look, sometimes it's good to blink,' Summers told Hunt. 'When you make a mistake, it's usually best to correct it and retreat, even if it's a little bit embarrassing.'
U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent unveiled the agreement at a news conference in Switzerland, following representatives from both countries meeting over the weekend for the first time since the trade war started.
'The consensus from both delegations this weekend is neither side wants a decoupling,' Bessent said, according to The Associated Press. 'And what had occurred with these very high tariff … was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade.'
The Hill has reached out to the Treasury Department, Greer's office and the White House for comment.
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