Larry Kudlow: U.S.-China Tariff Process ‘May Turn Out to be Very Benign’

Sunday on CNN’s “State of the Union,” President Donald Trump’s economic advisor Larry Kudlow said the U.S.-China tariff situation might end with negations and “turn out to be very benign.”

Kudlow said, “I think personally we have had to go in and fire a shot across the bow. China’s behavior is 20 years now. It’s more than unfair trade practice. It is illegal trading practices. They are stealing our property rights. They are forcing technology from our companies to be open so they can get it and they have tall trade barriers that president is somewhat right about. This stuff has to stop. No president has had the backbone to take it up publicly before. I think he is exactly right. I say to everybody on this the problem here is China. It is not President Trump. China has been getting away with this for decades. Past American presidents refused to take them on. I think President Trump is doing exactly the right thing. I think it is going to generate very positive results which will grow our American economy. It will help grow China’s economy. It will help grow the world economy.”

He continued, “This last round announced late last week president asked our trade diplomat to consider whether an additional round of tariffs would be necessary or useful. After we made the first round, the Chinese response was unsatisfactory. So the president is trying to get their attention again. The process may include tariffs. I cannot rule that out. It may rest on negotiations. We will see how the president wants to do it. He is pretty good at negotiating and is pretty good at standing his ground.”

He added, “You’re right. There has been a bump down in farm commodity prices. I’m not totally sure that this is going to last. This process may turn out to be very benign. You have to take certain risks as you go in. We are taking them. We are making our case. Nothing has happened so far.”

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