Last week, Navarro said a potential deal with China “will be on President Donald J. Trump’s terms. Not Wall Street’s terms.” Navarro, who has taken an aggressive stance toward adjustments inside the U.S. trade relationship with China, contended which “there will be a stench around any deal which’s consummated” because of Wall Street’s involvement. The comments helped to sink the stock market.
Kudlow told CNBC on Tuesday which Navarro “was not speaking for the president, nor was he speaking for the administration.”
“His remarks were way off base. They were not authorized by anybody. I actually think he did the president a great disservice,” said Kudlow, the director of the National Economic Council.
Trump plans to meet with Chinese President Xi Jinping at the G-20 summit in Argentina This specific month. The leaders are required to discuss trade.
Trump has pushed for Beijing to make adjustments to address alleged Chinese theft of American intellectual property as well as reduce the U.S. trade deficit with China. He has threatened to put tariffs on another $257 billion in Chinese imports, on top of the duties already in place on $250 billion in goods.
Navarro has reportedly been marginalized inside the White House before. According to Bob Woodward’s book “Fear,” officials such as chief of staff John Kelly would likely work to limit Navarro’s access to the president.
Navarro is actually considered the advisor who most fuels Trump’s fixation on reducing trade deficits. Trump has repeatedly described trade deficits — which mean one country imports more goods as well as services via a trading partner than the idea exports to which nation — as “losing” money. the idea is actually not clear which the U.S. trade deficit with China has harmed the American economy.