The U.S. economy and stock market are beginning to crack and it is making everybody a little bit crazy. Embattled General Electric is under financial strain from ill-timed acquisitions and share repurchases at the height of the market. GE is on the brink of having its debt downgraded to junk and now CEO Larry Culp wants to criticize President Trump for the tariff war with China. Below are excerpts from a video on tariffs that GE recommended to the public:
I think there’s no denying it’s a trade war. We’re talking about some very big numbers here. The U.S. has levied tariffs on $300 billion worth of imports and about $150 billion dollars of U.S. exports has been hit retaliation so far, and it’s not clear where the off-ramp is.
The costs are going to be mounting. It’s consumers who will pay at the end of the day. It’s American companies that will see their competitiveness reduced. They will find it harder to compete and win in global markets. Tariffs are not the right solution.
The oddity is that Trump’s policies have inured to the benefit of the wealthy, the investor class and corporate America. The tax cuts and the constant chatting up of financial markets has only been to help GE, which barely pays taxes already. Not taking the slight lying down, Trump clapped back at Culp and GE.