President Donald Trump’s aggressive tariffs have taken their toll on the Chinese economy, giving Washington the edge in trade talks with Beijing, top White House economic advisor Larry Kudlow said Friday.
“We have them over a barrel,” said Kudlow, director of the president’s National Economic Council. “On the other hand, we would like a good deal. Both countries should benefit.”
Kudlow, a former CNBC commentator, pointed to overnight economic data from China, showing that dollar-denominated exports there plunged 20.7 percent last month from a year ago, missing expectations by a wide margin.
“We have hurt them,” Kudlow said on “Squawk on the Street, ” as both sides hope the finish line to resolving their trade war is near. “We are still negotiating by phone and teleconference.”
“The documents from two weeks ago advanced enormously. That’s why the president is optimistic about the potential for a deal,” Kudlow added. But he stressed, “I don’t want to hang a timetable on this.”
However, Kudlow did signal that Trump and Chinese leader Xi Jinping could meet regarding their trade dispute later this month or early next month at the president’s Mar-a-Lago resort in Florida. “Nothing in cement, but there’s a lot of talk.”