Trump Defends Trade Moves, Says Tariff Is ‘a Beautiful Word’

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Self-professed “Tariff Man” President Donald Trump on Saturday defended his decisions to impose or raise levies against imports from Mexico and China, respectively, saying “companies are moving to the U.S.” to avoid paying the levies, and that “TARIFF is a beautiful word indeed!”

Trump had harsh words for Mexico again on Sunday morning, questioning the value of talks, days before a high-level delegation from Mexico is expected to meet with U.S. officials.

Trade tensions on several fronts have driven a slide in asset values over the past few weeks. The stock market slide on Friday extended a weekly loss to the worst since Christmas, and many strategists predict more losses ahead.

The benchmark S&P 500 index had its worst month of the year, falling more than 6.5% after starting May at a record high. The Dow Jones Industrial average, meanwhile, careened to a sixth weekly loss, the longest slump since 2011

Upon returning from several hours at the Trump National Golf Club in Virginia on Saturday, the president issued a series of tweets about the trade actions.

Regarding Mexico, Trump continued to intertwine various policy goals: stopping illegal immigration through the southern U.S. border with Mexico, ending the flow of dangerous drugs, and boosting job creation -- all through the imposition of import tariffs.

“They took many of our companies & jobs, the foolish Pols let it happen, and now they will come back,” Trump said. In announcing plans for an initial 5% tariff -- potentially rising to 25% -- Trump had said the move was to force the Mexican government to stop the surge of migrants at the border.

The president later tweeted that the U.S. has been the “Piggy Bank” for other countries for years. “We are no longer the ‘fools’ of the past!” he said.

The president was back tweeting about the tariffs again Sunday morning, saying that despite talk the U.S. should “talk” to its southern neighbor, “Mexico is an ‘abuser’ of the United States, taking but never giving” for decades -- and that it could be fixed if Democrats voted with Republicans to close immigration “loopholes.”

“Either they stop the invasion of our Country by Drug Dealers, Cartels, Human Traffickers, Coyotes and Illegal Immigrants, which they can do very easily, or our many companies and jobs that have been foolishly allowed to move South of the Border, will be brought back into the United States through taxation (Tariffs).” Trump said. “America has had enough!”

The comments came ahead of a planned high-level meeting in Washington this week to discuss the border situation. Mexican Foreign Minister Marcelo Ebrard is expected to meet with his U.S. counterpart, Secretary of State Michael Pompeo, and other officials to attempt to defuse the trade spat.

Separately, Graciela Marquez, Mexico’s economy minister, said Sunday she plans to meet U.S. Commerce Secretary Wilbur Ross in Washington on Monday.

On Saturday, Mexican President Andres Manuel Lopez Obrador said he was optimistic of achieving “good results” from the talks, and continued to call the U.S. leader his “friend.” Trump will be in the U.K. when those meetings take place.

Trump in May raised the tariffs on $200 billion in Chinese goods to 25% from 10%, an action that’s beginning to ripple through supply chains. An additional $50 billion was already subject to 25% tariffs. Chinese retaliatory tariffs on U.S. products kicked in Saturday, affecting more than 2,400 goods.

No formal talks are currently scheduled between the U.S. and China after the collapse of discussions in early May.

China is willing to work with the U.S. to find solutions, but the latter’s strategy of maximum pressure and escalation can’t force concessions from China, Vice Commerce Minister Wang Shouwen said on Sunday after the Asian nation issued a white paper on the trade negotiations. When you give the U.S. an inch, it takes a yard, he said.

--With assistance from Mark Niquette and Ben Bain.

To contact the reporter on this story: Ros Krasny in Washington at rkrasny1@bloomberg.net

To contact the editors responsible for this story: James Ludden at jludden@bloomberg.net, Mark Niquette, Ros Krasny

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