White House trade policy adviser Peter Navarro has been told by the administration to keep a low profile following caustic comments he made last week directed at Wall Street and a public rebuke from another economic adviser.
Navarro is being disciplined internally for warning the financial sector to back down on its criticism of the Trump administration’s conduct of the trade dispute with China, comments that were seen as unnecessarily provocative by others inside the administration, according to a source with knowledge of the situation. CNBC first reported that the White House was limiting Navarro’s public appearances.
Navarro, however, does not appear to be in danger of losing his job.
In a speech last week at the Center for Strategic and International Studies, a D.C. think tank, Navarro said the administration would not back down from its confrontational stance with China on trade and told the financial sector to get over it. “If and when there is a deal, it will be on President Donald J. Trump’s terms — not Wall Street terms. … If Wall Street is involved and continues to insinuate itself into these negotiations, there will be a stench around any deal that’s consummated because it will have the imprimatur of Goldman Sachs and Wall Street,” he said.
The comments upset people inside the White House, which is gearing up for a meeting next week on trade between President Trump and Chinese President Xi Jinping at the G-20 Summit in Argentina. The administration has sought to project an air of cautious optimism regarding the meeting and tamp down rumors that it might institute additional tariffs against China if no progress is reported.
“His remarks are way off-base,” White House economic adviser Larry Kudlow said in an interview on CNBC on Tuesday. “I actually think he did the president a great disservice. … I think Peter very badly misspoke. He was freelancing, and he’s not representing the president or the administration.”
Administration sources have leaked to news agencies last week that tariffs covering as much as $257 billion worth of Chinese goods could be announced next month if the talks in Argentina do not go well. The U.S. has already hit $250 billion worth of Chinese goods with tariffs ranging from 10 to 25 percent. The tariffs are set to hit 25 percent across the board next year.
