Larry Kudlow tells CNN that it’s possible what we are hearing from Trump is just the opening salvo in negotiations with China, however he also says they should take Trump seriously on the tariffs:
Asked whether the Trump administration’s tariffs could cause a trade war with China, White House chief economic adviser Larry Kudlow says “hopefully we won’t get to that point” https://t.co/YweQgyHCXr
— CNN Politics (@CNNPolitics) April 4, 2018
Kudlow says Trump is ultimately a ‘free trader’, that he’s admitted that to him and publicly to everyone else.
When asked, however, if we can have growth when there is a trade war, Kudlow simply responds “hopefully we won’t get to that point”.
Perhaps this is just ‘negotiations’ as Kudlow suggests, however I don’t believe that Trump will relent. After all, we now have the steel and aluminum tariffs that were threatened by Trump before, even though he did exempt a few allies from the tariffs.
So yes, I do believe our Protectionist-In-Chief will end up imposing 25% tariffs on Chinese goods and they will in turn do the same to us. And thus the trade war will officially begin.
In the meantime, the Stock Market will continue to fluctuate under the uncertainty that Trump has created.