National Economic Council Director Larry Kudlow joins FBN's Maria Bartiromo to discuss the Trump administration's trade policies, the outlook for economic growth and a potential 'phase two' for tax cuts.
About "trade war" fears with China, Kudlow said: "There is a process here. There is going to be some back and forth. But there is also some negotiations, we may talk about that, but that is the key point."
"At the end of the day, China's unfair and illegal trading actions are damaging to economic growth for the U.S., for China, and the rest of the world," Kudlow said. "They are preventing a much stronger global economy. They are doing damage to U.S. exports. And the president is the first guy with the backbone in decades, Maria, to actually go after it. Not just whisper it but to go after it with preliminary action."
"I think we are going to get a deal, over a period of time," Kudlow said about the current negotiation with China. "I think these barriers will come down on both sides. [The president] understands perfectly well that economies do better when trading barriers are reduced rather than raised. The tit for tat idea really doesn't work over a period of time."
He predicts that "it is possible to be in the 3-4% growth zone" this year, adding: "The last three quarters, really Trump's first year in office, we've picked up from under 2% to 3.1% at an annual rate... Confidence is booming."