Economists worry the tariff tit-for-tat between China and the U.S. could set off a trade war and lead to serious economic damage.
As a possible trade war with China looms over the American Empire, newly installed National Economic Council Director Larry Kudlow navigates Trumpland vexed by the president's rollicking pace. A former Wall Street economist and aide in the Reagan administration, Kudlow is known for his free-trade views, but he has pushed the president's more protectionist policies, arguing that China needs to be more open and fair.
"Japan is walking with us", he told FOX Business' Stuart Varney on Friday. "Not about trade wars".
"What I'm saying is, as this process plays out, it may not be necessary", he continued.
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Kudlow said Trump is seeking a "pot of gold" on the "other side of the rainbow. that is economic growth". "That's why we're looking. we haven't proposed anything - we're considering a second round of tariff actions".
"We're not running a trade war", Kudlow insisted.
He defended the president's actions as a way to build support for free and fair worldwide trade and that it would help build economic growth. "So he wants to solve this with the least amount of pain".
Serious negotiations between the United States and China to resolve their brewing trade dispute have "not really begun", and the Trump administration expects Beijing to take significant steps to open its markets, said a senior White House adviser.
Most economists say the current trajectory of tit-for-tat tariffs between the U.S. and China is a recipe for a trade war, which could lead to a recession in the US.