President Trump’s new economic adviser Larry Kudlow does not favor trade tariffs and talk of a “trade war” with China was premature and something that people should be cautious about, Hong Kong-based analyst Uwe Parpart has told Bloomberg TV.
“[Kudlow] was opposed to [tariffs] and he said so again last night – that he’s not in favor of tariffs [being imposed by the US]. He sees it as a tactic to get a better deal,” said Parpart, chief strategist at Capital Link International.
“Trump wouldn’t have appointed [Kudlow] if he thought that they were on a completely different sheet of music. And Kudlow, he’s criticized the tariffs until the very moment he was appointed. And he says he’s now had discussions with Donald Trump about it and it’s a necessary element in the way in which the United States deals with trade issues.
“He also points out that, with regard to China, it’s not really trade issues as such but things like the Broadcom acquisition of Qualcomm that is a problem – that US [intellectual property] is something to be protected.”
Kudlow’s pedigree came from the Ronald Reagan administration. “Tax cuts is what he’s all about – he believes that’s absolutely necessary to follow them on that for an easing of the tax burden on US corporates, but also on individuals,” Parpart said.
Uwe Parpart is also editor of Asia Times.