Published: Thu, July 19, 2018
Economy | By

Trump 'so dissatisfied' with China trade talks, keeping pressure on: Kudlow

Trump 'so dissatisfied' with China trade talks, keeping pressure on: Kudlow

The Chinese government refuted the US' claims regarding President Xi Jinping and a trade war.

"As far as we know, President Xi at the moment does not wish to make a deal", White House National Economic Council Director Larry Kudlow said at the CNBC Institutional Investor Delivering Alpha conference in NY on Wednesday.

Kudlow said on Wednesday that Xi was "holding the game up". "I think Liu He and others would like to move but haven't".

Earlier this month, the White House slapped 25 percent in tariffs on Chinese goods worth $34 billion - and Beijing immediately hit back with duties on US goods valued at $34 billion.

US President Donald Trump has threatened further tariffs unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

Kudlow noted the gap between US and Chinese tariffs, telling Cramer that "our average tariff is about" 2.5 percent, while "China's average tariff is about 14 percent".

When a preliminary deal fell through due to Trump's insistence on moving forward with tariffs, talks broke off.

The administration has also released a list of 10 per cent tariffs on an additional US$200 billion of Chinese goods, which could take effect as early as next month. "We will export like insane".

"President Trump inherited this mess", Kudlow said.

"And the tit-for-tat business, which is nobodies favorite path, but nonetheless, they can end that this afternoon by providing a more satisfactory approach and, essentially Jimmy, doing what the rest of the world knows needs to be done: tariffs down, non-tariff barriers down, IP theft no, allow the American or British or German or whoever full ownership of companies", Kudlow said.

China has retaliated in kind, as have other trading partners impacted by the metals tariffs.

The trade negotiations between the United States and China aimed at defusing tensions have stalled, said Kudlow.

And he said he has heard that European Commission President Jean Claude Juncker would make a significant free trade offer during a visit to the USA next week.

"We have been in a growth recession since the middle of 2009", Kudlow said, referring to years of tepid 2 percent GDP growth since the Great Recession.

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