Well, it looks like the hopes of Larry Kudlow talking some sense to President Donald Trump on trade have been shattered.
On the same day it was reported that Kudlow would be the new National Economic Council (NEC) director, succeeding Gary Cohn, he told the press that China can still expect a tough response from the U.S. on global trade.
In other words, more of the same protectionist measures.
Despite opposing the president on tariffs, Kudlow told CNBC that a great idea for the U.S. to partner with allies to fight against China, something similar to former President George W. Bush’s invasion of Iraq. No doubt this would spark a trade war.
“I must say as somebody who doesn’t like tariffs, I think China has earned a tough response not only from the United States,” he said.
“A thought that I have is the United States could lead a coalition of large trading partners and allies against China, or to let China know that they’re breaking the rules left and right. That’s the way I’d like to see. You call it a sort of ‘a trade coalition of the willing.'”
Kudlow noted that he is against blanket tariffs, adding that the U.S. should refrain from punishing friends “to try and punish your enemies in international affairs.”
Kudlow also favors a strong dollar policy, which has been difficult to gauge from the current administration. He declared that he would buy dollars and sell his gold because there is “no reason to believe the president doesn’t support a strong, stable dollar.”
“If you keep rates minimal, if you keep regulations and government spending minimal, if you keep the dollar sound and steady, you’re going to have a terrific economy, if government has a modest approach and lets people do what they need to do and allows the freedom to do it, we will do great in this country,” he stated.
In the end, he just wants the Federal Reserve to allow the national economy to “roar.”
“Just let it rip for heaven’s sakes. The market is going to take care of itself. The story takes care of itself let it rip the Fed will do what it has to do, but I hope they don’t overdo it.”
Will Kudlow be a great addition to the administration or a poor one? It’s a mixed bag.
One thing is for sure: it’s better than having Peter Navarro at the post.
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