White House slams China’s ‘weak’ tariff threat and ‘lousy’ economy

Top White House economic adviser Larry Kudlow on Friday ridiculed China’s threat of US$60 billion of retaliatory tariffs as “weak” and said the world’s second-largest economy was in significant “trouble”.

After China threatened to impose new retaliatory tariffs on a variety of American goods – everything from beef to condoms – the war of words between Washington and Beijing escalated yet further.

Warning that China had “better take President Trump seriously,” Kudlow insisted the Asian giant “is in trouble right now – their economy is lousy, investors are walking out, the currency is falling”.

“Foreign investors don’t want to be in China. I noticed today that Japan’s stock market is now worth more than China’s – I love that,” he told reporters at the White House.

Beijing’s latest salvo came after the Trump administration upped the ante in its plans for additional tariffs on Chinese goods worth US$200 billion, suggesting the rate could be increased to 25 per cent, from 10 per cent.

“I might think the $60 billion is a weak response to our $200 (billion),” Kudlow said dismissively, while admitting that “there is a lot they can do to damage our companies in China.”

The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries.