The United States and China have been battling on trade for more than a year now. The tariffs started slowly. In the first few months of the war, President Donald Trump placed tariffs on less than 3% of Chinese imports, but by December 15 the president plans to hit nearly everything the U.S. imports from China.
Despite rising tensions in recent months, Trump has said he wants a trade deal before his reelection bid in 2020. He has also insinuated that Beijing may be holding out for a Democratic candidate. In a speech in Baltimore Thursday night, the president mocked Democratic presidential candidate and former U.S. Vice President Joe Biden.
"Whoa boy. He’s a furious kind of a guy. Great guy. [Chinese President Xi Jinping is] dying to see...he wants Sleepy Joe,” Trump said, referring to Biden. “Could you imagine those two guys in a room...”
But despite Trump’s comments, former White House Communications Director Anthony Scaramucci thinks China is actually hoping for a Trump win in the 2020 presidential.
“You have an orange rag doll, Donald J. Trump, and you have a Doberman pinscher, China, shaking the rag doll,” Scaramucci said on Yahoo Finance’s On the Move. “And then what they're going to do in a couple months, they're going to throw that rag doll into the corner, and they're going to cut a deal with him because they absolutely want Trump to be reelected.”
So why does China want Trump to remain president of the U.S.? Trump is damaging the U.S. and undermining the country’s global standing, according to Scaramucci.
Trump is ‘burying the U.S.’
Trump has repeatedly said China wants a deal with the U.S. On Thursday, he said he preferred a to get a “whole deal” with China but did not rule out the possibility of an interim deal.
The trade tensions between the two countries have rocked global markets. In early August, stocks plunged after Trump announced — through a series of tweets— that he planned to place an additional 10% tariffs on $300 billion worth of imports from China. The word “tariff” has been mentioned in Trump’s tweets 165 times across 95 days, according to Barron’s, and on those days the S&P 500 fell by an average of 0.05%.
Earlier this month, Trump labeled China “the enemy” and just a few days later he claimed China officials had called him in a pursuit of a trade deal, but China’s Ministry of Foreign Affairs denied any calls.
“He is disrupting the global alliance and bringing down the international trading system. And he is hurting our hard and soft power and our standing,” Scaramucci said. “Literally, the way he acts is a full-blown embarrassment on the global stage. He’s stumbling and bumbling along. The Chinese is laughing. This guy's burying the U.S.”
Valentina Caval is a producer for Yahoo Finance’s On the Move.