Larry Kudlow: Trade issues with China could be settled in negotiations rather than tariffs

April 9, 2018 GMT

National Economic Council Director Larry Kudlow said Monday he believes there’s a chance to settle trade issues with China through negotiations rather than tariffs.

“I don’t know whether we’re going to have tariffs or not,” Mr. Kudlow said on CNBC. “We may. On the other hand we may be able to settle this with negotiations.”

The war of tariffs between the U.S. and China has escalated in recent weeks with both countries pledging to implement tariffs on $50 billion worth of goods. The U.S. has also increased tariffs on steel and aluminum, but has promised to exempt certain allies, not including China.

President Trump said there needs to be action on China’s trade policy and currency manipulation. Fears of a trade war have heightened due to the escalating tension.

“I don’t think this is damaging the market at all,” he said. “Somebody’s got to say to China, ‘You are no longer a third world country. You are a first world country, and you have to act like one.’ ”