grow at 1.8%. you just said tax cuts are good. many are wondering these days, are the deficits, are the debts good? i think it s interesting for the washington establishment to ever talk about deficits or the debt when you know they haven t been concerned about that in recent memory. it s just up to the american people when given the opportunity will invest and better their communities and make the spending choice. they can t do that if taxes go up or a snap back to where they were before tax cuts 1.0. charles: rate cuts before we go to recession. you know, these kind of pay rot tax cuts to help the middle class. i don t see what is wrong we doing that even if it goes against traditional grain. this is an unprecedented situation that we re in right now. jerome powell indicated that in his comments earlier today at jackson hole in terms of how the fed will act. the fed has never responded to a trade war situation by cutting interest rates. that s what its struggling with.
is yet to be seen internationally what kind of problems it poses for other countries but right now it s an effective piece of leverage. look at china, they a lot more to lose in a trade war then mexico. there is some burden placed on american consumers. when you put a tariffs and place it does not mean that costs in the united states buys by the same amount but will rise slightly and the burden americans are going to have to withstand in order to have the frameworks or be done with the understanding that at the end of this there will be a better deal in place. a lot of americans want to put skin in the game when i think there will be a payoff that is worth the long-term success of the united states. arthel: once again the american taxpayer pays the financial fronts. mexico did not people, taxpayers will and now you re saying with the trade war situation that americans will have to deal with the temporary increase in prices or for businesses for their imports or farmers for their impo
you look at president trump and he seems to have backed away from that. because i want help with north korea. gillian: and that might change might change. frankly the threat that north korea poses, with the ballistic missiles and warheads. chinese eports to the united states and the rest of the world tend to be low valued and things they import from us are higher value and vietnam could offset some exports from china in a sort of trade war situation, i think that the chinese would back down quickly, i think we have more economic leaders, but, of course, that s easy to say sitting here and not in 1600 pennsylvania avenue. gillian: and which ones do we pull for maximum, which of the levers do we pull at any given moment for maximum effect. it seems like the president says, i ve given you the benefit
well which is the president is out of step with the leaders in europe. in other words, if he refuses to follow them, he s therefore not leading. to me that s just on logic grounds that doesn t make any sense. he s taken a different path. there are many nations who will be with him. certainly the reception he got in warsaw indicated that as well. and because he s out of step with a certain group of european leaders does not mean he s given up leadership role. it may indeed mean he s embracing it. chris: let me ask you, juan, a very interesting conversation i had with reines priebus on this question of steel imports he basically says he s going to impose limits on steel. and you get the head of the european commission saying good. we then impose limits on some of your exports right. so you get into a trade war situation. so you see that inside the white house, you have people like steve bannon saying this will appeal to our base, to people who feel like they have lost jobs because of t