Investment guru Carl Icahn warns that tariffs are a “dangerous game” and have caused stock market crashes.
"With tariffs, it's a very dangerous game you're playing," Icahn told CNBC. "It helped bring the crash in 1929. I'm not a great supporter of that," he said.
The Trump administration’s “America First” policies, which have left the United States embroiled in a bitter trade war with China and tit-for-tat tariffs with other trade partners, have raised the cost of some raw materials for American businesses and strained their bottom line, Reuters explained.
President Donald Trump has imposed tariffs on Chinese goods worth $250 billion and has applied tariffs on steel and on foreign aluminum, which raised import and domestic costs. He has threatened tariffs on another $276 billion in Chinese products, which would touch nearly every imported good.
The president previously has threatened to hit virtually all Chinese imports with duties, Bloomberg reported.
Icahn adds he thinks Trump will ultimately do "what I consider to be the close-to-right thing," adding: "Hopefully, that will be settled."
For his part, Trump threatened to impose another round of tariffs on China.
Asked in an interview with CBS’s “60 Minutes” whether he wants to push China’s economy into a depression, Trump said “no” before comparing the country’s stock-market losses since the tariffs first launched to those in 1929, the start of the Great Depression in the U.S.
“I want them to negotiate a fair deal with us. I want them to open their markets like our markets are open,” Trump said in the interview that aired Sunday, while adding that more tariffs “might” be in the mix.
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