Larry Kudlow: USMCA 'More Important' Than China Deal for US Success

There is a great deal of focus on the U.S.-China phase one trade deal and whether it will continue, but White House economic adviser Larry Kudlow said Wednesday that the country's trade agreement with Mexico and Canada, which will be signed Wednesday by President Donald Trump and Mexico's President Andres Manuel Lopez Obrador, will prove far more important to America's success.

"In fact, it's about two times, maybe a little more than two times as important, a two-way trade with Canada and Mexico," said Kudlow on Fox News' "Fox and Friends." "It is a huge boost for automobiles and all forms of manufacturing, agriculture, and different forms of dairy, cattlemen, ranchers are going to benefit."

The deal also contains intellectual property protection, which means that "as the three countries respect this deal, then you're going to have an explosion of entrepreneurship and new innovation in North America, [and] take the world lead on this."

The United States is looking for growth after the pandemic, and the United States-Mexico-Canada Agreement is "exactly the medicine we need ... it's huge."

Meanwhile, Kudlow insisted that the talks on the phase one trade deal with China are continuing, despite the difficulties the United States is having with the country.

"There are a lot of problems going on in Hong Kong, tremendous national security problems, but the one area we are engaging, we're going to hold them accountable for these other areas, but we are still very much engaged in the phase one China trade deal," said Kudlow.

Kudlow also said the administration is looking "very carefully" at what the spikes in coronavirus are doing to the economic numbers.

"We've had tremendous bursts of jobs in May and June," he said. "Yesterday was reported tremendous record hiring rates. For example, people are starting to quit their jobs again, which is extraordinary, in order to shop around for even better jobs and wages ... I just think we have to work our way through this."

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