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Kudlow: Trump Trade Tariffs Might Come Before Negotiations With China

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By    |   Wednesday, 11 April 2018 05:56 PM

White House economic adviser Larry Kudlow warns that the United States might be forced to imposed President Donald Trump’s threatened trade tariffs on China before actual talks with Beijing occur.

Chinese President Xi Jinping promised on Tuesday to open the country’s economy further and lower import tariffs on products including cars, in a speech seen as an attempt to defuse an escalating trade dispute with the United States.

While Kudlow called the move "very positive," he didn’t rule out the Trump tariffs being imposed.

"I think what's going to happen is we are going to have negotiations at some point. There may be tariffs before, maybe not. We shouldn't panic," Kudlow, director of the National Economic Council, said on CNBC.

"So far there have been no tariffs implemented. … and you're not going to see any of that for probably a couple of months."

"I'm always an optimist that where there's a will there's a way and I believe both presidents want to get something good done," Kudlow said.

While most of the pledges were reiterations of previously announced reforms, which foreign businesses complain are long overdue, Xi’s comments sent stock markets and the dollar higher on hopes of a compromise that could avert a trade war, Reuters reported.

Xi said that China will sharply widen market access for foreign investors, a chief complaint of the country’s trading partners and a point of contention for Trump’s administration, which has threatened billions of dollars in tariffs on Chinese goods.

For his part, Trump has voiced optimism the two sides would hammer out a trade deal.

The comments from both countries followed a week of escalating tariff threats sparked by U.S. frustration with China’s trade and intellectual property policies, worrying financial markets over potential damage to global growth.

“When we do a deal with China, which, probably, we will - if we don’t, they’ll have to pay pretty high taxes to do business with our country,” Trump said during a White House Cabinet meeting with reporters present, Reuters reported.

On Sunday, Trump predicted China would take down its trade barriers, and said: Taxes will become reciprocal and a deal will be made on intellectual property.”

Vowing to shield U.S. farmers from Chinese retaliation, Trump said on Monday: “If, during the course of a negotiation, they want to hit the farmers because they think that hits me, I wouldn’t say that’s nice.”

Trump was referring to China’s threats to impose tariffs on U.S. soybeans, frozen beef and other agricultural goods, which have already pushed down prices for those commodities.

(Newsmax wire service Reuters contributed to this report).

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Trump economic adviser Larry Kudlow warns that the United States might be forced to imposed President Donald Trump’s threatened trade tariffs on China before actual talks with Beijing occur.
kudlow, china, trump, trade, tariffs
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2018-56-11
Wednesday, 11 April 2018 05:56 PM
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