Larry Kudlow, Trump economic adviser, comes around on tariffs as a tool
| Washington
Larry Kudlow calls himself 鈥渁n old free-trader,鈥� leery of tariffs.
But as the top economic adviser to a president who has wielded tariffs as a weapon 鈥� pushing back hard on trade practices around the world, from North America to Europe to China and Japan 鈥� Mr. Kudlow has come to appreciate President Donald Trump鈥檚 aggressive approach.
鈥淭he president鈥檚 use of tariffs as a negotiating tool 鈥� I think he鈥檚 right, I really do,鈥� Mr. Kudlow, assistant to the president and director of the National Economic Council, told reporters Wednesday at a breakfast hosted by 海角大神.
鈥淧articularly in the Chinese situation, I think he was right,鈥� Mr. Kudlow added. 鈥淗e鈥檚 the first president 鈥� I don鈥檛 know, ever? 鈥� to be hard-headed with China.鈥�
The Trump adviser listed Chinese practices that have long vexed bilateral relations and business dealings with American companies, including intellectual property theft, forced transfer of technology, and cyber-hacking. 听
The Chinese 鈥渉ave for the first time acknowledged that we have a point,鈥� Mr. Kudlow said. Before that they were in 鈥渄enial.鈥� Now, he says, they are engaging in 鈥済ood negotiations.鈥�
鈥淚 think we鈥檝e all learned something on this,鈥� Mr. Kudlow added.
In the discussion with reporters, Mr. Kudlow also addressed President Trump鈥檚 threat to close the US-Mexico border, the independence of the Federal Reserve, the controversy surrounding Mr. Trump鈥檚 intention to nominate Stephen Moore to the Fed, and other topics.
The C-SPAN video of the breakfast can be viewed 听
What follows are lightly edited excerpts from the breakfast conversation:
On Mr. Trump鈥檚 statement Tuesday, regarding the Southern border, that security is more important than trade:
Look, I think they鈥檙e both essential. I fully support him and his efforts to try to solve this border crisis, and the issue of border security is not an easy thing to do. It may not be cost free. I understand that.听 But I don鈥檛 think it鈥檚 one or the other.
On how the US might minimize economic damage if Mr. Trump closes the US-Mexico border:
One area we鈥檝e explored is try to keep the freight lanes open, the truck lanes. I鈥檝e talked to various officials in DHS [Department of Homeland Security] and others who are more knowledgeable than I, and that is possible.
On when Mr. Trump will make a decision:
The president will give us his views today, or as days go by.
On Mr. Trump telling Federal Reserve Chairman Jerome Powell on the phone, 鈥淚 guess I鈥檓 stuck with you鈥�:听
You know, the president may have said that lovingly, very lovingly, you know what I mean? Think about that.
On whether the comment was, in fact, made 鈥渓ovingly鈥� 鈥� given Mr. Trump鈥檚 criticism of the Fed鈥檚 handling of interest rates:
Well, I wasn鈥檛 on the conversation. I鈥檓 just opening up that possibility. It might have been a very loving, affectionate, you know, kind of a huggy thing on the phone.
On Mr. Trump's nomination of Stephen Moore to the central bank鈥檚 board, amid of personal financial problems:
He continues to support Steve. I certainly do. People are being awfully hard on him. This town is a toxic town in some respects. We are fully behind him.
On US government planning for Venezuela if the Maduro regime falls:
Economic assistance and economic restructuring would begin immediately. It鈥檚 a question of getting hold of what I call the machinery of government 鈥� which we are working on, by the way. Lots of discussions going on with people in the National Assembly, the Guaid贸 folks, and so forth.
It would be a rescue plan, it would be a restructuring plan, it would be a plan that would put cash into the country, into the hands of the people who were starving.
Some very clever people are working on this inside the [US] government 鈥� using banks, iPhones, apps, many clever ways to get cash in there. And the cash will not be bol铆vars, it will be dollars, at least at the beginning. Dollars are the answer.
