Politics

Coronavirus will delay export 'boom' from US-China phase 1 trade deal, Larry Kudlow says

Key Points
  • President Donald Trump's economic advisor Larry Kudlow said Tuesday that the deadly Chinese coronavirus outbreak will dent a surge in exports that is expected to flow from the first "phase" of the U.S.-China trade deal signed last month.
  • "It is true the trade deal, the phase one trade deal, the export boom from that trade deal will take longer because of the Chinese virus. That is true," Kudlow said in a Fox Business Network interview.
  • But Kudlow noted that the Trump administration, which imposed travel restrictions and quarantines in response to the coronavirus last week, still projects "minimal impact" from the fast-spreading disease.
Larry Kudlow, director of the U.S. National Economic Council, speaks during a television interview at the White House in Washington, D.C., U.S. on Thursday, Jan. 30, 2020.
Alex Edelman | Bloomberg | Getty Images

President Donald Trump's economic advisor Larry Kudlow said Tuesday that the deadly Chinese coronavirus outbreak will delay a surge in exports that is expected to flow from the first "phase" of the U.S.-China trade deal signed last month.

"It is true the trade deal, the phase one trade deal, the export boom from that trade deal will take longer because of the Chinese virus. That is true," Kudlow said in a Fox Business Network interview.

But Kudlow noted that the Trump administration, which imposed travel restrictions and quarantines in response to the coronavirus last week, still projects "minimal impact" from the fast-spreading disease.

"The world is not in Wuhan province," Kudlow said.

The partial trade deal signed on Jan. 15 includes several provisions to address issues including forced technology transfers and intellectual property theft, which Trump has complained about for years. It also includes a $200 billion increase in Chinese purchases of U.S. goods over two years — a priority for Trump.

But the coronavirus, which has infected more than 20,000 people in China and killed more than 400, has struck fear in investors and raised doubts about Chinese business.

Economic growth will hit 3% in 2020, says Trump economic advisor Larry Kudlow
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Economic growth will hit 3% in 2020, says Trump economic advisor Larry Kudlow