Former U.S. Treasury Secretary Larry Summers has delivered a masterstroke in the escalating U.S.-China trade debate, deftly undermining President Donald Trump’s aggressive tariff strategy with a compelling defense of global trade. Speaking at the University of Austin, Summers, a titan of the global economic elite, argued that the U.S. is winning big by trading “printed pieces of paper” for China’s tangible goods—a stance that challenges Trump’s protectionist rhetoric.

“If China wants to sell us things at really low prices and the transaction is we get solar collectors that help make there be less global climate change or we get batteries that we can put in electric cars and we send them pieces of paper that we print, think that’s a good deal for us.”

His remarks, delivered with the confidence of a seasoned policymaker, reframe the U.S.-China trade relationship as a strategic victory for America, directly challenging Trump’s narrative of China as an economic predator.

Summers dismissed the idea that China’s trade surplus, nearing $1 trillion annually, equates to exploitation. “The ‘cheating’ label Trump uses is a distraction,” he said.

“The real question is whether we’re getting value—and we are.”

He acknowledged narrow concerns, like potential over-reliance on Chinese supply chains, but argued these are exceptions, not the rule.

“For the vast majority of imports, we’re securing affordable goods that fuel our economy.”

This intellectual salvo comes as Trump doubles down on his tariff war, slapping 145% duties on Chinese imports last week, only to be met with Beijing’s retaliatory 125% tariffs on U.S. exports. While Trump frames his policies as a defense of American interests, Summers and his globalist allies are outflanking him, using economic logic to expose the tariffs’ futility. “Broad tariffs don’t punish China—they burden American consumers and businesses,” Summers warned, advocating for precision over bluster.

The global elite, with Summers as their articulate standard-bearer, are beating Trump at his own game, reframing the fiat paper trade as a boon the President is tarnishing. By championing the exchange of dollars for goods, Summers has landed a blow against protectionism, positioning his globalist cohort to gain as their own game of unhampered credit expansion shows signs of cracking.

The full interview: