White House economic adviser Larry Kudlow told Fox News Sunday that the trade negotiations “seemed to be taking too long” and the administration “can’t accept any backtracking.” He also complained that China hasn’t come far enough.
On the impact of the tariffs that took effect last week, Kudlow said “the economic consequences are so small” as the US economy is “in terrific shape”. He estimated US might only lose 0.2% of GDP. And, “this is a risk we should and can take without damaging our economy in any appreciable way.
On more tariffs on currently untaxed USD 300B in Chinese imports, Trade Representative Robert Lighthizer said the details would be released on Monday. But Kudlow said it could probably be “months” before they take effect.
Meanwhile, he added that talks are on-going. And, there is a G-20 meeting in Japan toward the end of June next month and the chances that President Trump and President Xi will get together at that meeting are pretty good.”