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Trump open to a deal with China on certain conditions, says advisor Kudlow

Kudlow said Trump had told advisers that “in his view, there is a good possibility that a deal can be made, and that he is open to that.” (REUTERS/Kevin Lamarque)

U.S. President Donald Trump is open to reaching a deal on U.S.-China trade irritants over dinner on Saturday with Chinese leader Xi Jinping but is ready to hike tariffs on Chinese imports if there is no breakthrough, White House economic adviser Larry Kudlow said on Tuesday.

Days before the high-stakes dinner, it was unclear whether the two sides had agreed on a formal agenda for the leaders’ conversation after the G20 summit in Buenos Aires. Kudlow said there were no scheduled talks on the ground for their advisers.

Kudlow said Trump had told advisers that “in his view, there is a good possibility that a deal can be made, and that he is open to that.”

But he said “certain conditions have to be met,” listing intellectual property theft, forced technology transfer, ownership of American companies in China, high tariffs and non-tariff barriers on commodities, and commercial hacking as examples of issues that “must be solved.”

Kudlow declined to comment on whether China had made offers of concessions.

The White House sees the dinner, which Kudlow hinted would involve Argentine beef, as an opportunity to “turn the page” on a trade war with China. But he said the White House has been disappointed so far in the Chinese response to trade issues.

“Their responses have disappointed because ... we can’t find much change in their approach,” he said, declining to comment on specifics.

“President Xi has an opportunity to change the tone and the substance of these talks,” Kudlow told reporters at the White House. “President Trump has indicated he is open - now we need to know if President Xi is open.”

If there is no progress, Trump is prepared to raise tariffs on US$ 200 billion of imports to 25% from current levels of 10%, and could add tariffs on another US$ 267 billion of imports, Kudlow said.

“As we’ve all learned, he means what he says,” Kudlow said.

Asked whether the two sides had agreed on a list of agenda items for the leaders to discuss, Kudlow said: “We’re in some significant preparation on all that.”