Kudlow, made the comments after the stock market fell more than 500 points after its opening, at least partially a response to a response statement to China about its plans Institute $ 50 billion in tariffs against U.S. agricultural and aviation industries. The Dow has managed to recover much of that ground by noon and have a positive day.
“I understand the concern on the stock market,” said Kudlow. “I understand that. But on the other hand, do not overreact.”
Earlier this morning the President of Donald trump has doubled down on his recent statements to slap tariffs on steel in China, aluminium and technology, stating that the current trade deficit the US overshadows any loss that would come from the current trade spat.
Trade Minister Wilbur Ross later supported President sentiment in the views of CNBC, describing China’s $50 billion in proposed rates as “relatively proportional” rates, has already declared trump administration and “an unlikely threat to my life” from the point of view of potential impact on the economy as a whole.
“This $ 50 billion that they are talking about amounts to about three tenths of a percent of GDP,” said Ross. “I’m frankly a little surprised that wall Street was so surprised. It was telegraphed for days and weeks.”
Kudlow, went so far as to suggest that there is flexibility on both sides as to what the tariffs entered into force, depending on the outcome of the current negotiations between the US and China.
“I doubt if there were any specific actions for a few months. We will see how it will end,” he said Kudlow. “Nothing concrete actually happened.”
Press Secretary of the White house Sarah Sanders also refused to speculate on how the USA rates will actually take effect or will there be problems between the US and China will be resolved in those negotiations.
“We ask China to stop unfair trade practices, and we’re going to work through this process over the next few months,” Sanders told reporters in a briefing on Wednesday. “I’m not going to get ahead of the process where we are”.
China threatens 25% of tariffs by 50 billion US dollars of goods, as trade war escalates
The US stock markets opened sharply lower amid fears of a trade war with China
Sourse: abcnews.go.com
