Tags: Trump Administration | kudlow | trump | china | huge

Kudlow: China Deal Is 'Huge' Accomplishment for Trump

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By    |   Saturday, 13 May 2017 09:37 AM

Veteran financial guru and former Ronald Reagan adviser Larry Kudlow said America’s deal with China is a “huge” accomplishment both economically and strategically for President Donald Trump’s administration.

“I really like the China situation economically and strategically,” he told CNBC. “They did a good thing, give them credit,” he told CNBC.

The United States and China have agreed to take action by mid-July to increase access for U.S. financial firms and expand trade in beef and chicken among other steps as part of Washington's drive to cut its trade deficit with Beijing, Reuters reported.

The deals are the first results of 100 days of trade talks that began last month, when a meeting between Trump and Chinese President Xi Jinping proved far more friendly than had been expected after last year's U.S. presidential campaign, but the immediate impact was unclear.

“China trade, huge. Because the president has basically changed his campaign position,” the Newsmax Finance Insider said.

“We're not going to confront. We're not going to have a trade war,” said Kudlow, who advised the Trump campaign on economic issues.

“We're going to negotiate. We're going to make commercial deals,” he said. “Exports great for both economies, creating jobs at home,” said the author of "JFK and the Reagan Revolution: A Secret History of American Prosperity," written with Brian Domitrovic and published by Portfolio.

"This will help us to bring down the deficit for sure," U.S. Commerce Secretary Wilbur Ross said at media briefing in Washington. "You watch and you'll see."

The United States ran a trade deficit of $347 billion with China last year, U.S. Treasury figures show.

By July 16, the 100th day after the leaders' meeting, China agreed to issue guidelines that would allow U.S.-owned card payment services "to begin the licensing process" in a sector where China's UnionPay system has had a near monopoly.

China will also allow U.S. imports of beef no later than July 16, and the United States will issue a proposed rule to allow Chinese cooked poultry to enter U.S. markets.

Foreign-owned firms will also be able to provide credit rating services in China.

Kudlow did confess that the lingering uncertainty about Trump’s tax policy could be a cloud on the horizon.

“If there is no tax cut (this year) the latest it can come, I would say, is the winter of '18 because there’s got to be room, six months or so, for the economy to pick up on it,” said the radio talk-show host and CNBC senior contributor.

“If there's no palpable improvement, not so much in GDP, but in wages and salaries and benefits and so forth, that's where the pinch is,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985. 

“If there's no palpable improvement in an off year, I think the Republicans are at risk for the midterm,” said Kudlow, who was a key architect of Trump’s tax platform and an early supporter of the real-estate billionaire's campaign. 

“Now, I'm not saying they won't get it done until next year,” but Kudlow wanted address the scenario of a delay.

(Newsmax wire services contributed to this report).

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Veteran financial guru and former Ronald Reagan adviser Larry Kudlow said America’s deal with China is a “huge” accomplishment both economically and strategically for President Donald Trump’s administration.
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Saturday, 13 May 2017 09:37 AM
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