Larry doesn't get it. Trump is using it as leverage. We run a huge trade deficit with China. They need us more than we need them. You can get a better deal with China, including opening up their markets further to our products and demanding that they shift some of their manufacturing plants to the US if we are willing to use our leverage. Trump is willing to play hardball with the Chinese and one of the weapons is tariffs.
There is one point where Larry concedes to Pawlenty that it’s a matter of negotiation—without seeming to be aware of the irony, given that they’re talking about Trump—who has been trying to make exactly that point.
The US has a huge trade deficit with every country, rich or poor, including Japan and the EuroZone.