White House chief economic adviser Larry Kudlow said on June 26 that the U.S. will see next week if China is willing to continue trade talks. After negotiations fell short, with President Donald Trump accusing China of reverting some of the commitments it promised to make, Kudlow said that he isn’t willing to get his hopes up on negotiating a landslide deal.
"I wouldn't expect any grand deal," Kudlow said on CNBC. "I think, talking to our negotiators, they are going to kind of reset the stage and hopefully go back to where the talks left off last May."
As negotiations are pending, $250 billion worth of Chinese goods continue to be affected by 25 percent tariffs, with another $300 billion of goods at risk. The Trump administration wants China to make a “large-scale” purchase of agricultural goods from the U.S., but no agreement was made so far.
The administration could implement more tariffs depending on how well the negotiations play out, Kudlow explained.
"If the U.S.-China talks go well, then we would not expect new tariffs. If they do not go well, the president has indicated that the tariff tool is at his disposal and he might use it," he said.
The chief economic adviser made it clear that he wasn’t going to make assumptions on how the trade talks will go.
"I'm not going to predict. I'm not going to evaluate. I want to see how it goes," Kudlow said. "Sometimes what you hope happens, doesn't happen. Sometimes your greatest fears are not realized. I am going to play this from the optimistic side because it's inbred in my body and soul."