Could a UK Deal Cut Tariffs?

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00:00President, Trump has suggested that a U.K.-U.S. trade deal could eliminate the need for tariffs.

00:06What are your thoughts on that?

00:08Well, I'd be surprised if he eliminated them altogether.

00:13But there's no question that I think with the U.K., that tariff level might be very low.

00:18I think in the region of 10 percent.

00:20Could even be lower.

00:22But I think it'd be very hopeful, very optimistic to suppose that that would be zero.

00:30I think there'd be some, forgive me, element of a tariff.

00:34But we just have to wait and see what that level is.

00:37And in regards to China, obviously Trump is having more of a protectionist angle.

00:44How do you see in the future as this trade war continues?

00:47A trade war is good for no one.

00:50Do you think he'll attempt to continue to try and bully China in that way?

00:54No doubt in my mind that Trump is trying to exert maximum pressure on China.

01:00He feels that China has been a bad actor in international trade.

01:05And he's using the threat of tariffs essentially to make sure that they become good actors and,

01:12in his view, behave properly.

01:14Now, where it all ends, we don't know.

01:16Because China itself is a major power and has some influence in this.

01:21But I don't think they want to see high tariffs on their goods as they export them into the U.S.

01:27And I don't think the U.S. consumer wants to pay any extra or considerably more than they need to.

01:34So tariffs, I think, are a zero-sum game for the Americans and the Chinese.

01:41But Trump is clearly using the threat of tariffs to try and get China to modify their behavior.