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U.S. Sanctions Against China May Increase Trade Deficit

In his latest interview with CGTN-America TV’s The Heat, IPI’s Dr. Merrill Matthews addressed tensions between the U.S. and Iran, as well as U.S.-China trade relations.

Matthews dismissed news outlets which reported conflicting messages between President Trump and his administration’s willingness to meet with Iran under no preconditions. Matthews stated the president “is a big picture guy” who leaves his diplomats to iron out the details.

Noting current efforts being made by the U.S. State Department to persuade other European nations to agree to sanctions against Iran, Matthews panned criticism that America’s withdrawal from the Iran deal was unlawful. “President Obama didn’t receive Senate confirmation for the Iran treaty, so it’s not illegal for Trump to remove the U.S. from the deal,” he said.

Regarding news of the continued trade standoff between China and the U.S. and China proposing new tariffs on $60 billion worth of U.S. goods, Matthews warned President Trump may not see his desired decrease in the trade deficit.

“Our trade deficit has actually gone up, which is a result of a strong economy,” said Matthews. “If we impose these sanctions, it may have an effect on the yuan, which may make Chinese products even more affordable in the U.S., going against Trump’s efforts.”

Click here to watch the full discussion.

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