GDP Growth May Surpass 4 Percent: Trump's Economic Adviser

Darnell Taylor
July 21, 2018

Trump has said the tariffs are an effort to protect American workers from unfair Chinese technology and trade practices, though experts have warned they could harm the USA economy.

Kudlow added that while officials in the Chinese government seem to want a deal, Chinese President Xi Jinping himself is "holding the game up".

Hua Chunying said the United States policies will not resolve the trade dispute.

Kudlow's remarks, delivered at the CNBC Institutional Investor Delivering Alpha Conference, come as many from Wall Street to Washington have said the economic recovery - in its ninth year - is long in the tooth.

"And I think the president [Trump] is so dissatisfied with China on these so-called talks that he is keeping the pressure on and I support that", he added, shedding light on the USA president's thinking on the trade conflict.

The threat of tariffs led to a counter-threat from China and kicked off weeks of furious negotiations between the two countries in an attempt to reach a deal.

Trump invites Putin to USA for second meeting, stunning security boss
In exchange, he said, Russian authorities could interview several Americans the Kremlin accuses of unspecified crimes. Earlier, they met on the sidelines of multilateral conferences.

Asked whether the administration is considering more tax legislation following the cuts passed late past year, Mr. Kudlow said there could be a tax reform "2.0 and 3.0 and a 4.0".

"I think he needs to move".

President Trump then proposed 10-percent tariffs on a list of $200 billion in Chinese products, which China responded to by filing a challenge with the World Trade Organization. "We are waiting for him". The Chinese Ministry of Commerce has warned of an equal response if the U.S. goes through with a second round.

Trump has also demanded that the European Union cut its 10 percent tariffs on imported cars, and his administration is conducting a national security study that could lead to a 25 percent US tariff on imported vehicles.

China could end USA tariffs "this afternoon by providing a more satisfactory approach" and taking steps that other countries are also calling for, he said.

Larry Kudlow, head of the White House Economic Council, also said he expects European Commission President Jean-Claude Juncker to bring an important trade offer to Trump when he visits Washington next week.

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