Kudlow Says China, US 'Heck of a Lot Closer' to Deal Than Months Ago
The director of the White House's Council of Economic Advisors, Larry Kudlow, said "a lot of headway" is being made in trade negotiations with China, and that there's discussion of another trip to continue in-person negotiations. "We're not there yet, but we've made a heck of a lot of progress," he said at a National Press Club luncheon April 23. "I don't want to make a prediction or a forecast" on reaching a resolution, he said. "Will we succeed? I don't know. We're a heck of a lot closer than we were. Sometimes it goes hot and cold."
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Kudlow said he knows the tariffs on Chinese imports have cost some companies, but said he believes those costs are manageable in the American economy. "I believe tariffs on China were instrumental in bringing them to the negotiating table," he said.
Kudlow called the new NAFTA, known as the U.S.-Mexico-Canada Agreement, a very important trade reform, and said that "if we get it through Congress," its changes to auto rules of origin, expanding financial and digital services and the extended exclusivity for biologics "could add a half-point to GDP per year." That's higher than the International Trade Commission's estimate that by the 6th year, it would add about .35 percent to GDP (see 1904180043). Kudlow also inflated the job impact ITC estimated, saying, "I'll call it a million just to round it up." He said, "My great hope is USMCA will pass in this session of Congress."