CNBC's Squawk Box co-host Becky Quick says Trump's idea of using tariffs to pay for child care and other programs is “crazy” and “inherently inflationary”
Quick explains that she was present at an event with Trump but not allowed to ask questions: “There were four questions that were asked that were set up in advance by other people. ... It's a controlled format”
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From the September 6, 2024, edition of CNBC's Squawk Box
REBECCA QUICK (CO-HOST): In remarks at The Economic Club of New York yesterday, former President Donald Trump pledged to reduce the corporate tax rate from 22% to 15% for companies that actually make products in America. He also described his plans to fund a range of things from the revenue of tariffs.
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QUICK: OK. I was there yesterday. I’m just finishing a stint as a board member of The Economic Club of New York.
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QUICK: So, he came and he laid out a series of plans. Some of the plans I understand and can follow, some of them I cannot. And I will say the idea that you’re going to raise a lot of money through tariffs and not have it be inflationary does not make a lot of sense to me. It’s one or the other. If you’re putting tariffs on things, like a 200% tariff on Chinese cars that he talked about, he did that intentionally so that people would not buy Chinese cars. So, you’re not going to raise the money on that, you’re either changing people’s behavior or you’re raising money. And if you’re raising money from it, it’s inherently inflationary. Because your consumers are not – American consumers will not be getting low prices.
ANDREW ROSS SORKIN (CO-HOST): Wasn’t anybody pushing him on that?
QUICK: We’re not allowed to. He comes and he speaks. There were four questions that were asked that were set up in advance by other people who were allowed to ask those questions, they couldn’t ask a follow-up. So, it’s a controlled format.
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SORKIN: So, I did watch different clips. The Child Tax Credit thing.
QUICK: The Child Tax Credit is crazy. You know, thinking that you are going to raise enough money in these tariffs not only to balance the budget, to then roll out all kinds of spending, and to pick up Child Tax – to pay for child care expenses basically for everybody doesn’t make any sense to me.