Lowering of tariff barriers best way to solve trade disputes: WH
The US said today that the best way to solve trade disputes was by lowering tariff and non-tariff barriers by countries and allowing the free market to operate.
The White House remarks came amidst fear of trade war among the major trading partners after the US decided to impose a 25 per cent tariff on import of steel and 15 per cent on aluminum.
The US sought lowering of barriers and promised reciprocal move by America.
"The best way to solve trade disputes is to lower the barriers. I've said that for many years. Lower the tariff, lower the non-tariff barriers and let the free market private operate," Larry Kudlow, Director of the National Economic Council under President Donald Trump told reporters at the White House.
"This by the way, is part of our discussion with China, is part of our discussion with Europe, is part of our discussion with our neighbours Canada, Mexico," Kudlow said.
He was responding to a series of questions on fear of trade war after US decided to impose a 25 per cent tariff on import of steel and 15 per cent on aluminum.
Primarily aimed at China, today the import duty was imposed on European Union, Mexico and Canada. Import of steel and aluminum also are being subject to the new steep tariff.
Under President Trump, trade dispute between India and the US has increased, with his administration asking New Delhi to lower its trade barriers and open up its market.
However, unlike countries like China, Mexico and Canada and those from Europe, India is not on top of the trade issues for the Trump administration.
"Let's agree to have generalised reciprocal barrier reduction, so everybody wins. That's the way out of this. But again, President has made it very clear whether it's negotiation or enforcement, legally tariffs are part of his clip," Kudlow said in response to a question on trade negotiations with countries.
During the upcoming G-7 Summit in Canada next week, Kudlow said he expected a number of discussions on these issues including with Canadian Prime Minister Justin Trudeau, who has traded barbs with Trump on the issue of steel and aluminum tariffs.
"This is in my judgment, a family quarrel. There is trade disputes in a family quarrel. Keep the lines of communication open with everybody...this thing can work out. I'm the optimist," Kudlow said, adding that Trump believed in free trade.
"I believe in too. But you got to clear away the debris, unfair and illegal trading practices, which has come to litter, the world trading system, which is badly needing reform," he said.
"If you can take that and clear that debris, you'll have the proverbial rainbow at the end of which there's a pot of gold. And when you open up that pot, we will have faster economic growth. That's why trade reform is important. If done properly, trade reform is a growth policy as long as it's done. That's what president Trump wants," Kudlow said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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