Kudlow Says China Buying U.S. Ag Products Would Be a ‘Good Plus’

(Bloomberg) -- White House economic adviser Larry Kudlow played down the impact on U.S. consumers of additional tariffs on Chinese imports and suggested Beijing could strengthen the case for avoiding them being applied next month if they bought U.S. agricultural products.

“From our talks internally, that would be a plus,” Kudlow said Friday in an interview on Bloomberg television. “That would be a very good plus if they start buying agricultural products in size. It would certainly help the story.”

Beijing pledged to respond after President Donald Trump announced Thursday that he would impose a 10% tariff on a further $300 billion in Chinese imports, a move set to hit American consumers more directly than his other tariffs so far. The new import taxes, which Trump later said could go “well beyond” 25%, will be imposed beginning Sept. 1 on a long list of goods expected to include smart-phones, laptop computers and children's clothing.

“There is certainly a month here before the tariffs go into place,” said Kudlow, director of the National Economic Council. “A lot of things can happen in a month. A lot of good things can happen in a month.”

Kudlow also said the impact on U.S. consumers would be “minuscule” and that the biggest economic burden would fall on the Chinese.

“Our economy is very strong. Their economy is very weak. They are losing market share, they are losing production, and they will probably not get that back,” he said.

To contact the reporter on this story: Ryan Haar in Washington at rhaar3@bloomberg.net

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Alister Bull, Vince Golle

©2019 Bloomberg L.P.