Trump's advisor blames Xi for China trade row

Trump's advisor blames Xi for China trade row

China rejects as false, the U.S. accusation that the Chinese president is to blame for blocking a trade deal between the two countries.

National Economic Council director Larry Kudlow painted a rosy picture of the economy Wednesday - even as the United States is embroiled in the beginning of a trade war.

Trump considers the EU's 10 percent tariff on cars to be unfair compared to the USA 2.5 percent tariff, although the United States maintains a 25 percent tariff on pickup trucks.

On July 6, US authorities placed $34 billion worth of tariffs on Chinese products after trade talks between the two nations reportedly ended without a settlement.

Trump is "dissatisfied with China" and is "keeping the pressure on", Kudlow said in an interview on CNBC, the television network where he worked for before joining Trump's staff.

US President Donald Trump has threatened further tariffs unless Beijing agrees to change its intellectual property practices and high-technology industrial subsidy plans.

"I think Liu He and others would like to move but haven't", he said at a conference.


Trump this month also leveraged steep tariffs against historic US allies including the European Union and Canada, as well as Mexico. Liu was involved in three rounds of negotiations over trade with U.S. officials in May and June.

Critics have said the escalating trade war could harm US workers and businesses.

"At the moment the trade negotiations are kind of stalled", he said, noting he thinks the "president is doing exactly the right thing".

Kudlow said talks between the two countries are now stalled. "Which we don't want to use, but we have tremendous powers", Trump said. "We are waiting for him (Xi)".

Kudlow said the ball is now in China's court but noted that President Xi Jinping is not ready to compromise and is "holding up the game".

European Commission President Jean-Claude Juncker is due to meet with Trump in Washington July 25 and "I'm told he's bringing a very important free trade offer ... that could lower barriers", Kudlow said.

Mr. Kudlow suggested Beijing knows what it must do - knock down non-tariff barriers, further prevent IP theft and allow foreign firms to fully own their operations, as opposed to relying upon controversial Chinese joint-ventures.

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