Transcript for Pres. Trump on U.S.-China trade war: 'We're in a very strong position'
One to Washington the trade war in China is still top of mind for presidents from. And he was speaking about an earlier this morning so take a look. I did what when they get what it means electing. Over a hundred billion dollars and Barrett. Are people that they want they get by from someplace else other than China or they can really be ideal is make their product. In the USA that's what I really what. This comes after China retaliated yesterday and announced higher tariffs 160 million dollars worth of American goods. And that was in response to the US rate raising tariffs on Chinese goods so. I want to bring in Karen Travers at the White House. Karen I really don't think that we can ask us enough and I think they were asking on your radio calls today. Who will build the brunt of these terror. Wars Dallas certainly you're looking at American company is to import parts or products from China that are gonna see an increase in price on those products is now on the tax. For them to bring them in from China will be high ten to 25% as a soften the president last week and you know some small business owners say that when they do that and they absorb that higher costs may have to pass that along to their customers so American consumers down the line. Could be paying for these new tariffs on the president. Kimberly continues to insist that it's this transfer of money from China to the US treasury and that China is paying for these terrorist that's just not how this is playing outs. Yet and I just want to ask you do you think trump is playing the long game here like do his actions now will that improve how things are later. Yet yesterday you saw the markets really take a deep dive the Dow Jones is down more than 600 points in the end of the day was the worst day of the year except for January 3 so a lot of concerns it among investors here and overseas as to why is going to happen and whether or not this trade war is temporary escalating or indefinite and it certainly seems like it could be indefinite U they had the pond but in late last year as negotiations were underway but. Killing those negotiations have stalled the next big thing we might be looking at is a meeting between president trump. And China's present she at the ended June but there's no indication of high level talks in between now and that that could change of course but the president does believe that he have to take a tough position on China he does backing of Republicans and Democrats on Capitol Hill and the broader policy. Of getting tough and and fixing a trade imbalance but it's the tactic that the president's using. That is certainly raising concerns in congress and of course on Wall Street. Yeah and I just want to mention the tweaks and I said earlier he tweeted this morning he said the escalating trade war about the escalating trade war he said we're in a fantastic position. So I guess the question is. Are we. Can't have point out that the US economy is strong you know they were good jobs numbers earlier this month things are humming along and that's why the president very publicly and confidently we'll declare that the US economy can handle this and certainly senior officials say the same thing. That as they get top fund China the US economy is in good enough shape today handle any short term bumps and bruises over the next couple of months. They say that China's economy though is not as good and that that slowdown will impact China more and that's with going to bring them to the negotiating table. You know and potential slowdown in China's economy though Kimberly may be small comfort to American farmers who are certainly feeling the effects of this tree tension in tit for tat. And American companies and consumers who are gonna start to see higher prices on imports because of the terrace. All right Karen Travers at the White House thank you so much for joining us.
This transcript has been automatically generated and may not be 100% accurate.