White House economic adviser Larry Kudlow said Tuesday that despite the recent escalation in the trade war with Beijing, the Trump administration remained open to negotiations and could again halt the proposed tariffs on $300 billion worth of Chinese goods if progress was made.
President Trump also said Tuesday morning that additional aid could be made available to farmers as a consequence of the trade war heating up.
“As difficult as things may be, and I know the markets are bit volatile, the reality is we would like to negotiate,” Kudlow told CNBC. “We’re planning for the Chinese team to come here in September. Things could change with respect to the tariffs.”
He added: “On the other hand, if there is no progress on the deal, then the tariffs might get worse, but he is open to it. That is really the key point.”
The Trump administration has previously pledged $16 billion in aid to farmers to compensate for losses caused by the trade war. Trump said Tuesday that more aid could be made available. “As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do – And I’ll do it again next year if necessary!” he tweeted.
The White House announced on Monday that the China would be designated as a currency manipulator. The announcement came hours after China said it would suspend purchases of U.S. agricultural goods, dealing a sharp blow to the farm sector. China’s move was in retaliation for the White House announcing last week that it would place new tariffs on $300 billion worth of Chinese goods. Trump initially said the rate on the tariffs would be 10%, but later said it could go as high as 25%.
