Larry Kudlow: Coronavirus will slow U.S. farm exports to China
The White House economic adviser also said the coronavirus could spur business investment in the U.S.
White House economic adviser Larry Kudlow conceded today the spread of the Wuhan coronavirus in China will affect its ability to purchase massive amounts of U.S. goods and services as part of 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 on Fox Business.
China has not formally asked for consultations on meeting a commitment to buy $200 billion in U.S. farm goods, energy products and other goods and services over the next two years. The deal, signed last month by President Donald Trump, will go into effect on Feb. 14.
Kudlow said he didn’t “wish China any ill whatsoever,” but said the coronavirus could spur business investment in the U.S.
“You may get a step up in production here in the U.S., which would be very beneficial,” he said.
The White House adviser said there could be a decrease in exports and production in China, particularly in the pharmaceutical sector, and “some things kind of in the middle when you get to automobiles and auto parts, but there is a lot we don’t know.”