Investor Mark Mobius agrees “completely” with the actions President Donald Trump is making to force concessions and a reduction in the trade deficit.
“I agree with him completely,” Mr. Mobius said, much to the surprise of the liberal commentators. “The U.S. has been taken for a ride — let’s face it — over the last 20 or 30 years. It’s time to start saying, ‘Look, there has to be some reciprocity between these two countries, because it’s just crazy to have this kind of deficit.’”
Mr. Mobius, the famed investor and founder of Mobius Capital Partners LLP, said “China needs the U.S.” more than the U.S. needs China.
“I think at the end of the day, the U.S. is going to win this one, because the U.S. is the biggest importer in the world, and China needs the U.S.,” he told CNBC in an interview late Monday. “Winning means getting some concessions and a reduction in the trade deficit.”
Lost in all the coverage about the impact tariffs could have on the U.S. economy, is the recent and unexpected narrowing in the U.S. trade deficit., which shrunk to $64.8 billion in May. It was fueled by a surge in exports that sliced $2.5 billion off of the $67.3 billion in April.
In April, the U.S. trade deficit narrowed sharply to $46.2 billion in April, a big net-positive for 2Q gross domestic product (GDP).
“What I would buy now is those countries who are going to be exporting to the U.S. instead of China — like Bangladesh , Vietnam, Turkey,” he added. “These are all big producers of garments and shoes and consumer goods.”