White House economic adviser Larry Kudlow said Wednesday that "there's no recession in sight" for the American economy and that President Donald Trump "is on the right track" with his economic agenda.
Kudlow, director of the National Economic Council, sounded optimistic about the path of the USA economy.
On Wednesday, Mr Larry Kudlow, who heads the White House Economic Council, said he believed lower-ranking Chinese officials want a deal, including Mr Xi's senior economic adviser Liu He, but that Mr Xi has refused to make changes to China's technology transfer and other trade policies.
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.
Last week the Trump administration's trade representatives announced plans for fresh tariffs on a possible $200 billion worth of Chinese goods, just days after Beijing and Washington levied tit-for-tat tariffs of $34 billion on each other's goods.
Kudlow said he believed lower-ranking Chinese officials want to put a stop to dueling USA and Chinese tariffs.
Kudlow said China could resolve the dispute "this afternoon" by simply cutting tariffs, eliminating non-tariff barriers, and stopping the practice of stealing United States technology through forced transfers. "We don't want to be with the tariffs", he added, saying they could hurt USA companies' ability to compete around the world.
"You've got kids, millennials ... who have never seen a full-fledged long-lasting prosperity", Kudlow said. Most recently, Trump has turned to increasing tariffs on products from China, the European Union, and Canada, sparking retaliation and launching a trade war. "I think the president is going exactly the right thing here".
"President Trump has the biggest backbone", Kudlow said. "I do not think President Xi, at the moment, has any intention of following through on the discussions we made". "We are waiting for him".
Kudlow, a longtime advocate for a free market, said that while he generally opposes tariffs, something needed to be done about worldwide trade. Europe, Canada, even our sources in China say that even the Chinese government knows that they are doing is wrong. He added that the ball is in President Xi's court.