(Bloomberg) -- White House economic adviser Larry Kudlow stressed U.S. tariffs announced on Chinese goods are still only proposals that might never take effect as the Trump administration sought to tamp down fears of a trade war.
“None of the tariffs have been put in place yet, these are all proposals,” Kudlow said in an interview Wednesday with Bloomberg News. “We're putting it out for comment. There's at least two months before any actions are taken.”
Administration officials throughout the day emphasized the U.S. is willing to negotiate with China, helping to ease concerns among investors about a tit-for-tat trade conflict. The Dow Jones Industrial Average, after falling more than 2 percent at the market's open, finished the day up almost 1 percent.
Commerce Secretary Wilbur Ross said China's response isn't expected to disrupt the U.S. economy. In an interview on CNBC on Wednesday, he said China's announcement of retaliatory tariffs against the U.S. “shouldn't surprise anyone.” He said the U.S. isn't entering “World War III” and left the door open for a negotiated solution.
“Even shooting wars end with negotiations,” Ross said.
Earlier Wednesday, China said it would impose an additional 25 percent levy on about $50 billion of U.S. imports including soybeans, automobiles, chemicals and aircraft. The move matched the scale of proposed U.S. tariffs announced the previous day. The U.S. is allowing 60 days for public feedback and hasn't specified when the tariffs would take effect, leaving a window open for talks.
Chinese Ambassador to the U.S. Cui Tiankai said Wednesday his country is ready to negotiate.
“Negotiations would still be our preference, but it takes two to tango,” Cui said.
--With assistance from Andrew Mayeda
To contact the reporters on this story: Jennifer Jacobs in Washington at jjacobs68@bloomberg.net, Nick Wadhams in Washington at nwadhams@bloomberg.net.
To contact the editors responsible for this story: Alex Wayne at awayne3@bloomberg.net, Mike Dorning, Joshua Gallu
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