Washington, Aug 1 : US President Donald Trump's trade war with China is backfiring and impacting the US economy, according to his former chief economic adviser.
The tariff battle has had a "dramatic impact" on US manufacturing and capital investment, Gary Cohn told the BBC. The trade war was "a very convenient excuse" for China to slow down its overheated economy, he added.
Cohn, a free trade advocate, resigned from the Trump administration in March 2018. The 59-year-old former president of Goldman Sachs bank was an unusual hire for Mr Trump because he was a Democrat in a Republican administration.
He also focused on economic internationalism, while the president was set on economic nationalism.
Cohn served as director of the National Economic Council in the Trump administration from January 2017 to April 2018, announcing he was resigning after Trump decided to impose import tariffs on steel and aluminium.
"I think the Chinese economy is driven by credit and credit availability," Cohn told the BBC's Today programme.
"Credit and credit availability is determined by the central government. And they can turn it on and they can turn credit off."(UNi)