President Trump declares to advisers and close allies that he has no intention of withdrawing from office, escalating the trade war with China on the grounds that clashes with Beijing are very popular on his political basis and help him will win reelection in 2020 regardless of immediate economic problems.
Government officials and external Trump consultants said on Tuesday that they did not expect him to significantly change his position in the coming days, claiming he was determined, despite the turmoil in world markets and the frustration on his own Party To endure a tightening showdown with Chinese President Xi Jinping to consider the Chinese as economic villains and driven by his desire to fulfill a key promise of his 2016 campaign: that he would dramatically overtake the US Chin for a relationship. The confrontation is also fueled by Trump's willingness to ignore presidential norms, including his suggestion on Tuesday that the Federal Reserve should support its trade efforts by lowering interest rates.
"I do not see him crying soon uncle. Said Stephen Moore, a conservative economist who retired in a turmoil from the test as a candidate for the Trump Federal Reserve Board. "It's a high-risk strategy, but it's not in his personality to step back, it goes back to what he said when he first came down the escalator at Trump Tower."
When he arrived on Tuesday Speaking to reporters in Marine One en route to Louisiana, Trump insisted he was in "a very, very strong position." He called the stalled negotiations "a bit of a quarrel."
Trump called that Strength of the US economy as leverage and said, "We have all the benefits." Say, "We look at it very closely."
But as Trump expresses confidence, there were tensions in the White House, and some advisers were worried about Trump's strict nationalism and firm belief in tariffs as economic weapons, the differences reflect increasing concern in Republican circles about the keen rhetoric and refusal of the President to rally lead.
"I do not like it right where it's going," said former White House Communications Director, Anthony Scaramucci, a well-known investor. "The economy is still very strong. I am not aware that this will derail the economic history completely. But it could weigh on the stock and bond markets. "
" Customs are dull instruments. They can hurt competitors and leverage negotiation, "said former White House secretary Rob Porter, who occasionally held fierce discussions in the Oval Office on trade. "They can also have significant implications for global supply chains and domestic producers and consumers and any decision on tariffs should include a careful consideration of all these consequences ."
Trump endeavored to involve his current advisers The negotiations have unfolded and provide a unified front for the Chinese, who he believes are looking for vulnerabilities, according to several officials, many of whom spoke on condition of anonymity, to have private conversations. With Scaramucci, Porter, and others now alienated from the White House, Trump has found it easier to control his own administration and govern his own instincts.
Trump was irritated on Sunday after National Economic Council Director Larry Kudlow confirmed "Fox News Sunday" that US consumers are paying the government's tariffs on Chinese imports, which contradicts Trump's claim that the Chinese are Paying bill, officials said.
"Trump called Larry and they got it out," said a White House official who was not allowed to speak publicly. However, two other officials said the conversation was heartfelt and said Trump and Kudlow were trading back and forth, with Trump repeatedly telling Kudlow to "not worry".
Republicans close to the president said this Accept the hard line of the president, even if you do not share it.
"The president believes that tariffs are a good economic policy. They are an instrument for trading, "said Senator Lindsey O. Graham (R-S.C.), a confidant of Trump. "Trump has been consistently trading for 30 years."
Graham said Trump often talks about China in a blanket fashion, underscoring his unwillingness to twitch. Presidential advisors say he comments on how many goods are manufactured in China at low cost and how he believes that China does not pay its workers or does not obey international law. These people say he also boasted about how much he had hurt the Chinese economy.
At a meeting of Republicans at the luxe 21 Club restaurant in New York City on Monday night, former Trump economics consultant Gary Cohn said he feels the president wants to keep the trade debate for the 2020 election alive because he the view is that this is a successful election campaign, according to a participant who was not authorized to publicly discuss the meeting.
Cohn, who has long been tariff-critical, was also worried that the collapse of the country's peasant industry could cause lasting harm, and said that Trump's efforts to offset the impact of the trade war on US farmers The provision of subsidies to compensate for them are not a sufficient approach when markets are lost, two participants said. Cohn compared Trump's strategy to treating cancer with a patch, they said.
Nevertheless, Cohn says Trump could win a second term because of the strength of the US economy. He added that the president could run on a "3-3-3" platform, meaning about 3 percent for unemployment, GDP growth and wage growth, said two participants.
The event included wealthy political givers and other GOP forces brokers, was organized by a company employing the former White House chief of staff, Reince Priebus, who also spoke there, according to three persons who were familiar with the rally ,
When Cohn was in the administration, he and Trump would be loud, profane quarrels about tariffs, and Trump sometimes told him to stop arguing, because Cohn, according to former aides, would not change the President's mind.
Trump admitted in private talks that economists by and large say customs duties are causing American consumers to pay more for prices, but he would add that "you can find an economist to say anything," in which Words of a former adjutant who discussed the problem with him.
Dozens of US companies have complained about Trump's ear Higher steel and aluminum tariffs have cost them more and injured more US workers than they helped. But Trump does not see it that way and supposes that companies are trying to blame him for problems that started before he introduced tariffs, people familiar with the internal debate.
"He is currently being re-elected" because we have low unemployment rates and wages are rising, "said Tom Bossert, former Homeland Security Advisor to the Trump administration. "Trump sees it as advocacy for the American worker."
Some critics wonder if Trump's strategy is effective or rather a timeless exercise without a clear ending.
"China is a goal to be faced." said Senator Angus King, an independent Maine who negotiates with Democrats. "The question is, is this shock-and-awe strategy a strategy at all? Will stronger tariffs lead to results? I'm not sure.
Trump's influential conservative media allies, including Fox Business Presenter Lou Dobbs, have enthusiastically promoted the president's idiosyncratic tactics and belittled his business-friendly critics.
Dobbs spoke on Monday The nightly broadcast with Trump's longtime political advisor, Corey Lewandowski, criticized Trump's opponents in terms of trade as the "Chamber of Secrets" – a reference to the US Chamber of Commerce – and said he should " ignore all Wall Street companies ".
Stephen White, the former White House chief strategist who once advised Trump on trade issues, said in an interview on Tuesday that Trump's view on trade issues has not changed since their first meeting in 2010 at the Trump Tower and argued that it would be difficult for any adviser to persuade him to change.
"He was watching Dobbs then, reading the New York Times, and following everything about China," Bannon said. "It's the core of who he is."
But there is a growing gap between Trump and the congressional Republicans who on Tuesday expressed their dissatisfaction over the president's refusal to measurably soften his position. A number of GOP Senators have called in recent days to express disapproval, but Trump remains determined.
"The fact is that Americans are paying the price for these tariffs," said Sen. Patrick J. Toomey (R-Pa.) Reported to reporters on Tuesday, citing economic data, saying that the charges would not have led to the trade gap to China or to affect Chinese exports measurably.
Toomey said, "I assume the president understands how it works. But you would have to ask him why he comes to the conclusions he comes to. "When he was pushed to further explanations, he declined and said he would" leave it at that. "
Vice President Pence has quietly tried to reassure the senators "to raise concerns about tariffs, but no meaningful concessions or promises," the Senate GOP advisor this week. During a lunch with Republicans last week, Pence told the senators that he had heard them when they cursed the government's tariffs, but then asked them to turn to the president without further ado.
Erica Werner and Damian Paletta contributed to this report.