White House Economic Advisor Larry Kudlow has said that there was a “strong possibility” that US President Donald Trump will meet his Chinese counterpart Xi Jinping at the G20 economic summit in Japan next month…reports Asian Lite News
Kudlow said during a TV interview that the chances of such a meeting “were pretty good”, but added there were “no concrete, definite plans” for when US and Chinese negotiators will meet again.
On Friday, American and Chinese negotiators ended their 11th round of talks after failing to reach agreement to end the trade war that began in 2018 with Trump’s decision to impose a 10 per cent tariff on $200 billion worth of goods from China, which retaliated with levies on $60 billion worth of US products.
“The talks will continue,” Kudlow said. “I will say this: There is a G-20 meeting in Japan toward the end of June next month and the chances that President Trump and President Xi will get together at that meeting are pretty good.”
“We were moving well, constructive talks… and I still think that’s the case… But the problem is, two weeks ago in China, there was backtracking by the Chinese,” Kudlow said.
He replied “I think I do”, when asked whether US officials expect the Chinese to retaliate for the tariff hike put on by the US on Friday when it increased the rate to 25 per cent on $200 billion of Chinese goods, CNN reported.
“We may know more today or even this evening or tomorrow,” Kudlow said of the expected retaliation. “We’ll see what they come up with.”
Contrary to the President’s suggestions that the Chinese alone will pay the tariffs imposed by the US, Kudlow acknowledged American companies would pay in effect a tax increase that often times is passed on to consumers, but he added that “both sides will pay” because both nations’ economies will feel some impact from the duties.
He argued, though, that the tariffs would have a “very modest” impact on US economic growth and said the tariffs have increased customs revenues.
Kudlow confirmed that no new talks with Chinese negotiators have been scheduled, but he said US Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin have been invited to return to China for more discussions.