Click For Photo: https://image.cnbcfm.com/api/v1/image/105975489-1560893263854img_8769r.jpg?v=1560893328
President Donald Trump has the right goal in mind to settle ongoing trade issues with China, but his approach could have far-reaching consequences on the U.S. economy, Union Pacific CEO Lance Fritz told CNBC Tuesday.
It’s time to hold the Beijing’s feet to the fire and push them to honor international trade standards of the World Trade Organization, yet tariffs on billions of dollars of imports from the country are hurting local economies, he added.
US - Economy - Sit - Mad - Money
“I think that’s gonna ultimately damage the U.S. economy if they go on too long,” he said in a sit down with “Mad Money” host Jim Cramer. “The president’s used them as an effective tool to get China to the table, but I think we need to use caution as to how deep and long we use that as a tool because it’ll definitely create a problem with our economy.”
Fritz said he told Trump his thoughts about the impact of 25% tariffs on $200 billion worth of Chinese goods. The president has repeatedly claimed that China would pay the brunt of the taxes. The locomotive chief said the agriculture business in Nebraska, where Union Pacific is headquartered, has been “negatively impacted” by the dispute. About half of the acres for soybeans planted in the U.S. are used for exports and China once made up 40% of those purchases, Fritz said.
% - Crop
“They’re about zero right now so that means 20% of the crop has to find a...
(Excerpt) Read more at: CNBC
Wake Up To Breaking News!