Wall Street trader and Sarge986 President Stephen Guilfoyle said President Trump's trade policies have China "by the short hairs" and "right where we want them" in the bid to win any impending trade wars.

Guilfoyle said on Your World that "we've got a pretty hot economy" and that China is struggling in comparison.

He made the remarks as both nations instituted millions of dollars worth of tariffs on popular goods.

"They have retail sales in the hole... they've got industrial production in the hole," Guilfoyle said. "The Shanghai Composite [stock index] is down 17 percent year-to-date. We've got these guys where we want them.

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Guilfoyle said China holds about $118 trillion in U.S. debt, meaning that "if they don't buy our stuff, it hurts their investment."

He rebuffed doubts regarding winning a "trade war" with China, saying that there will likely be short-term volatility in at Wall and Broad, but that "by the end of the year, we will have capitulation from China and from Canada and from Mexico."

"We got them and we're going to win this," he said.

Oklahoma Congressman Tom Cole (R) also reacted to Trump's tariffs.

.@TomColeOK04 on trade tensions with China: "You don't see much upside in this fight. But I will say, there's a lot of confidence in @POTUS. He's asked for patience, and so far at least, he's gotten it." @TeamCavuto https://t.co/05V4LLMOmB pic.twitter.com/WwGP8r8QgV — Fox News (@FoxNews) July 6, 2018

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