US Tariffs: Kudlow: No deal yet with China

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Europe

02:40

Meanwhile, there's still no trade deal between China and the US. President Donald Trump's top economic advisor, Larry Kudlow, says the president is determined to move ahead with tariffs on China this month if no agreement is reached. That's the first and highest official statement on the talks in days. Our White House correspondent Nathan King has the latest.

Larry Kudlow began his briefing by saying there is no deal to allow embattled Chinese telecoms giant ZTE to resume purchases of critical US components, but he didn't rule one out.

LARRY KUDLOW WHITE HOUSE CHIEF ECONOMIC ADVISOR "No decision has been reached by both sides as of now."

President Trump's top economic advisor also told CGTN that the US president was determined to impose tariffs on 50 billion dollars worth of Chinese goods and impose investment restrictions and export controls on Chinese hi-tech purchases. He said "structural reform" was key - meaning lower tariff barriers, not just buying more US products.

LARRY KUDLOW WHITE HOUSE CHIEF ECONOMIC ADVISOR "This is not the Chinese government buying a bunch of natural gas and soybeans from America. This is about reducing tariff rates and non-tariff barriers that will permit the increase in US export sales to China. That's the actual mechanism."

China has said any imposition of tariffs would see a proportionate response and no additional purchases of US energy or agricultural products saying in a statement:

"All economic and trade outcomes of the talks will not take effect if the US side imposes any trade sanctions, including raising tariffs."

Addressing the US president's imposition of steel and aluminum tariffs on European trading partners, and neighboring Canada and Mexico, Kudlow called for calm and said it was just a trade dispute at this stage.

LARRY KUDLOW WHITE HOUSE CHIEF ECONOMIC ADVISOR "I regard this much like a family quarrel. I'm like the optimist. I believe it can be worked out. President Trump is very clear with respect to his trade reform efforts. We will do whatever is necessary to protect the United States, its businesses and its workforce."

NATHAN KING WHITE HOUSE "This may be the calm before the storm. The US president will be in Canada this weekend for the G7 summit there. The US will be isolated among its allies and will face condemnation for protectionist policies. 'America first' - still looking very much like 'America alone'. Nathan King, CGTN at the White House."