White House Economic advisor Larry Kudlow reacted to the stock market jitters following China’s decision to levy tariffs on American products in response to President Donald Trump’s tough actions on China.
“Trump is putting his cards on the table,” he said on Fox Business on Wednesday. “He’s standing up for this country, but he’s also standing up for a better world trade.”
Kudlow denied that there was a trade war with China, pointing to the ongoing difficulties with China over intercessional property theft, trade violations, and technology transfers.
“Blame China, not President Trump, because they’ve been going on for many years, Trump is really the first president to fight back and to put a shot across the bow,” he said.
Kudlow said that raising tariffs and backchannel negotiations with China would continue over several months and predicted that Trump’s tough actions with China would get global support.
“I understand the stock market’s anxiety. I get that. On the other hand, don’t overreact,” Kudlow said. “We will see how this works out.”
He defended the president’s actions as a way to build support for free and fair international trade and that it would help build economic growth.
“I think that at the end of this whole process, the end of the rainbow, there’s a pot of gold and if you open up that pot, you will see better economic growth, more trading going on, improved wages for both sides,” Kudlow said.