Political watchers opined Thursday on comments made by Lawrence Kudlow, President Donald Trump’s new economic advisor, that doused the markets’ tariff fears Wednesday when Kudlow stated that the tariffs against China may likely be a negotiating tactic and may never actually be enforced.
Trump’s proposed tariffs against China could be a negotiating tactic, Kudlow said on Stuart Varney’s Fox Business show. He told NBC News that tariff talk was “part of the process,” and that it was “possible” that tariffs against China wouldn’t go into effect. “I would take the president seriously on this tariff issue.”
Greg Valliere, chief global strategist for Horizon Investments, noted in his Thursday morning Capitol Notes briefing that Kudlow “came to the rescue” as the stock market plunged Wednesday “amid exaggerated fears of a ‘trade war.’”
Kudlow stated Wednesday that “this is not a trade war,” Valliere said, “and besides — the tariffs proposed by the U.S. and China are just opening shots in a process that now will give way to negotiations that could last for weeks, maybe longer.”
The markets “instantly turned positive after a horrendous open,” Valliere noted.
Kudlow’s argument, Valliere continued, “is that a deal is possible, one that will be a plus for the U.S., and that China has to confront the issue of its theft of intellectual property.”
Valliere sees “a deal by summer” and says “talks on NAFTA have progressed; an agreement in principle is possible in the next week or two.”