White House economic adviser Larry Kudlow on Friday, Aug. 2, endorsed President Donald Trump’s decision to impose a new tariff of 10 percent on about $300 billion worth of products from China at the start of September.
The U.S. trade reform policy aims not only for “free, fair, and reciprocal trade,” said Kudlow, it is to “help all sectors of the American economy where there has been economic harm done as a consequence of unlawful trading practices by China and other countries,” continued Kudlow.
Kudlow, who is director of the National Economic Council, said President Trump is not satisfied with the progress of trade deal with China. He stated that President Trump had “indicated in good faith, a very respectful note” to Party leader Xi jinping.
“We hope to continue the trade talks in September,” said Kudlow and “We hope their team comes here.”
The Chinese regime threatened to retaliate to the new U.S. tariffs. But Kudlow said, “Any consumer impact is very, very small, miniscule” on the U.S. economy.
The White House economic adviser said, “Consumer spending and consumer wages and salaries and consumer savings are all booming,” and “It’s the strongest part of the economy.”
Whereas the effects of the trade dispute “have fallen most heavily on China,” said Kudlow. “They’ve had to slash prices to try to compete, that has done damage to their profits and their companies and their economy is in a very big slowing mode,” said Kudlow.
“There’s also a lot of shift in production and supply chains out of China,” continued Kudlow and “It’s doubtful that they’ll get those markets back.”
Kudlow stated that China could reinforce its case for preventing the new tariffs, if it bought U.S. agricultural products, during an interview with Bloomberg television on Friday.
— Bloomberg TV (@BloombergTV) August 2, 2019
Speaking to White House reporters, Kudlow reaffirmed the strong U.S. economy, stating that the U.S. consumer sectors remained strong.
“It was a very good jobs report” and more Americans “are flooding back into the job market,” said Kudlow, citing figures from 335,000 to 370,000 entering the American labor force.
“That tells me not only is the economy strong with a low unemployment rate, but because of the increase in salaries and wages and compensation, people are coming back,” reassured Kudlow, and added, “that’s rare, but very, very positive.”
President Trump’s economic adviser emphasized that the aim of the U.S. trade reform policy “is designed not only for free, fair, and reciprocal trade, but to help all sectors of the American economy where there has been economic harm done as a consequence of unlawful trading practices by China and other countries.”
Kudlow supported the Federal Reserve’s decision this week to cut interest rates by a quarter of a percent, saying “That’s a big step in the right direction.”
“They did lower their target rate, and the money market is predicting additional rate cuts” from the Federal Reserve and “That’s a good thing,” said Kudlow.
Kudlow stated, “Incentives to lower taxes and regulations” would trigger an “even bigger impact on economic growth.”