Trade Talks Moving Ahead, Deals With China and Mexico Near
Trade talks toresume with China later this month, and US Trade Representative Robert Lighthizer is “getting close” to reaching a trade deal with Mexico, National Economic Council Director Larry Kudlow said Thursday.
However, he said in a TV interview that the Chinese government should not “underestimate President Donald Trump’s toughness and willingness,” as the president will continue his “battle to eliminate tariffs and non-tariff barriers and quotas, to stop the theft of intellectual property, and stop the forced transfer of technology.”
Mr. Kudlow said he will likely be involved when a Chinese delegation visits the United States later this month, but more likely, David Malpass, Undersecretary of the Treasury for International Affairs, will act as lead.
President Trump has targeted China with tariffs on $50-B in goods, but Mr. Kudlow said talks can often prove more effective than expected.
When it comes to Mexico, Mr. Kuslow said that he did not want to give away detailed secrets, but Mr. Lighthizer is “a little more optimistic than I have seen him in many moons.”
Mr. Kudlow also discussed the “strong dollar,” saying it is a “sign of confidence” the world has in the United States.
“There is a lot of unrest around the world. Money is flowing into the USA,” Mr. Kudlow said. “A strong USD holds down commodity prices, gasoline prices are slipping, Crude Oil prices are slipping. In macroeconomic terms, it’s sending a positive story of global confidence.”
The US Dollar (.DXY) Index finished flat to unchanged after it was announced that China’s vice minister of commerce will meet with the US Treasury under secretary for international affairs in late August to discuss trade. The USD is hanging at 96.73 just off if its highs and seeking its 6th consecutive gainer, having climbed 1.7% since last Wednesday.