The Wall street Journal ripped White House aide Peter Navarro for dismissing its warning that U.S. trade policy was courting recession.
In an editorial posted Wednesday, the newspaper noted Navarro, in an interview with Fox Business, had denounced “us for sounding like The People’s Daily, the Chinese Communist propaganda arm.”
“That was novel as criticisms of these columns go, but perhaps Mr. Navarro would care to comment again after Wednesday’s recession warning from the bond and equity markets?” the Journal said. “Are they Commies too?
“Stocks fell about 3% on the day on bad economic news out of Germany, China and the bond markets. Europe’s largest economy shrank by 0.1% in the second quarter as exports fell amid trade and Brexit uncertainty. Chinese readings on factory production, consumption and employment also revealed an economy that is slowing sharply. China’s industrial production increase of 4.8% was a 17-year low.”
The newspaper noted some supporters of President Donald Trump “are cheering the Chinese economy’s pain.” But it warned China could be driven into a recession.
“A Chinese recession would mean a European recession, which would send U.S. growth down too. The impact would be worse if slower growth triggers capital flight from China and there’s a disorderly fall in the yuan.”
And it said the key is for Trump to stop the trade threats by tweet and call a tariff truce with China.
The Journal added: “Someone should tell Mr. Trump that incumbent presidents who preside over recessions within two years of an election rarely get a second term.”