MR. KUDLOW: You know, we'll see what happens, okay? I don't want to presuppose anything. The President is going to make up his mind after the meeting.
But I will say this: Our economy is in very good shape right now. And when you multiply through whatever numbers you want to use - $250 billion or tack on another tranche, which may or may not happen, at a 10 percent tariff rate or more - it's really just a fraction of our economy. Okay? It's just a fraction of our economy.
I'm not suggesting that there aren't winners and losers in that game. It's a complicated game. But on the other hand, I think we are in far better shape to weather this than the Chinese are.
And I want to say one other thing. I really appreciate your characterization; I am a free trader. But you have to ask yourself - and this is what President Trump has been talking about - is it free trade when there is clear evidence of unfair and WTO illegal trading practices by China for several decades? Is that fair? Is that free? Is it free when intellectual property theft occurs or when Chinese ownership of American companies force transference of technology from American companies to the Chinese companies? Is that fair? Or high tariffs on agriculture and industrial supplies, is that fair?
So President Trump is the first President in, I don't know, at least 20 years - and I'm including Democrats and Republicans - who not only has made this case but continues to make this case forcefully and to take actions to defend American workers and our overall economy. Other Presidents in both parties have raised the issue and then walked away from it and President Trump obviously doesn't intend to.
You know, this is under the heading, I think, for him, of "Promises made, promises kept." It's something he's talked about for several years and he now continues.
If China will come to the table - or, in this case, the dinner table - with some new ideas and some new attitudes and some new cooperation, as the President said, there's a good possibility they can make a deal. He's open to it. So nothing is written in cement or stone. But, again, for a free trader, where's the free trade?
And, for several months now, since I've been here, the President and I have talked about this - you know, we'd love to see a world of zero tariffs, and zero non-tariff barriers, and zero subsidies. We'd love to see that world. But unfortunately we don't have that world, particularly with respect to China, but not only China. And so he's taking actions that he thinks will get us closer to that world.
We can go around. Yes, please.
Q Thanks. Just another GM question: When the President said yesterday "they better damn well open [up] a new plant there very quickly," was he just venting his frustration? Or does he have some consequences in mind if they don't?
MR. KUDLOW: You know, I'm going to leave that to him. You may find additional announcements coming on that topic.
Some more? Let me go in the back. Yes, ma'am.
Q I wanted to ask you about what Ambassador Cui Tiankai said recently to the Wall Street Journal.
MR. KUDLOW: Who?
Q Ambassador Cui Tiankai, the Chinese Ambassador to the United States.
MR. KUDLOW: Yes.
Q His thought was that there would be a real risk to global - to the global markets if there wasn't a deal. That they could become fragmented as well. How big are the stakes if you can't reach a deal?
MR. KUDLOW: Look, the ambassador makes a point. Now, if he would do his part or his government would do their part, then we can all make a much better point. That's what President Trump is saying.
I mean, I'll read you the quote again. There's a "good possibility" we can make a deal, and he's open to it. But certain conditions, you know, have to be met. Certain things have to be changed. And the President, again, in the spirit of "Promises made, promises kept," is going to defend, you know, the interests of the American workers and ranchers and small businesses and the economy writ large.
We've - let me just add one other point to this: The rest of the world agrees with us. I mean, we signed, at the U.N., for example, the trilateral agreement with the EU and the United States and Japan - worth looking at that document, which outlines, you know, what they call "non-market abuses." Read: China.
Just recently, before the Shanghai conference where President Xi was to give an important speech - I'm not sure there was much new there. But in any case, just before that conference, with no prodding from the USA, the ambassadors - the French and German ambassadors to China - the French and German ambassadors to China wrote a very tough piece going after, again, non-market, unfair, non-reciprocal trading practices. There is broad-based support for the American position here, which is China should change its practices and come into the community of responsible trading nations.
They can do that. Right? They're a major economy right now. It's not like they were 25 or 30 years ago. We would welcome it. The President has said he's happy to make a deal, but they have to take certain actions and give certain assurances. So, you know.
Q Director, does that mean you'll spend the G20 getting that support around your position from other countries at the G20?
MR. KUDLOW: I'm sure we will. I'm sure we will. We have in many other forms. It's got more - I want Ambassador - I want Ambassador - yes, please.
Q Mr. Kudlow, thank you.
Q (Inaudible.)
Q Yes, he was talking to me.
Tariffs are - in effect, are tax on imported products that are paid for by the consumer. So does the President realize that these escalated tariffs are going to be paid for by the American citizens?
MR. KUDLOW: Well, look, he realizes the ramifications. As I said earlier, given the strength of our economy, given the size of our economy, we are in position to deal with this and handle this very well. That's the key point. And I'm not so sure about China, but I'll leave that to China experts, and so forth and so on.
The benefits - let me just look at the other side of the ledgers. Very important. The benefits of true, free trade, globally, will be enormous. You know, if we go back to the idea of zero tariffs, and zero non-tariff barriers, and zero subsidies; if China plays by the rules, even the WTO rules - and all of that needs reforming, in our judgement - but they are violating those rules. If we do have a free trading system or we move in the direction of the free trading system - a true free trading system - we will benefit enormously. And, frankly, we will benefit, they will benefit, and the rest of the world will benefit.
You know, free trade throws off enormous benefits when it's done properly, and consistency, and in a reciprocal manner. That's the key point the President emphasized and he's absolutely right.
So, you know, I think of it - this is a - possibly a long rainbow here, and at the end of that rainbow is a pot of gold. You open up that pot and you have prosperity for the rest of the world, but you got to get through that long rainbow. We're not there yet. We can get there, the President is reaching out, but we'll see how that works.
Yes, go ahead. I'm sorry. Yes, go ahead.
Q Thank you, sir. Earlier, you mentioned low oil and gas prices as evidence that the President's economic policy is working. You mentioned the U.S. becoming the global dominant energy player. But merely days ago, the President said that it was necessary to let Saudi Arabia and its Crown Prince get away with ordering the murder of a Washington Post journalist because Saudi Arabia ensures low gas prices. Now, which one is it sir?
MR. KUDLOW: I'm going to let Ambassador Bolton handle that question. I'm trying so hard to swim in my own lane, and I think John will help out with that whole discussion. He's sitting there much too calmly and quietly so I want to get him up here. We've known each other a very long time.
You're on, John.
NSA Director John Bolton answering the media: Above. (White House photo) Click image to expand.
AMBASSADOR BOLTON: Well, I'm delighted to be here. (Laughter.) I don't really have much to add. Sarah gave you the list of bilaterals. Let me just update it a little bit because we're trying to fill every minute of the President's schedule.
She said he's going to meet with President Macri, the host government of Argentina. He'll meet with President Moon of South Korea. He'll meet with President Erdoğan of Turkey, Prime Minister Abe of Japan. That will transform at some point during that meeting into a trilateral meeting with the Prime Minister of India, Narendra Modi. And then, as Sarah said, the President will meet with President Putin, and have a working dinner with President Xi.
Yeah, right here.
Q Thank you, sir. Does the President have any plans in the works to meet with the Saudi Crown Prince while he is there?
AMBASSADOR BOLTON: No. Look, the bilateral schedule is full to overflowing at this point, and so those are ones that I've listed that he'll be meeting with.
Q Hello? Yes. I have a question about the border tensions right now with the U.S. and Mexico.
AMBASSADOR BOLTON: Yes.
Q The U.S. launched tear gas canisters into Mexican soil, and I'm wondering if you've gotten any - if Mexico has given the go ahead before that happened. And what is the U.S. doing to mitigate any tensions right now with the incoming López Obrador administration?
AMBASSADOR BOLTON: Yeah. I don't think that's really a subject of the G20. But I can say that Secretary of State Pompeo, who will be attending the G20, and therefore will not be accompanying Vice President Pence to the inauguration on Saturday the 1st - Secretary Pompeo will fly overnight from Argentina to Mexico, and will meet with the new foreign minister of Mexico on Sunday the 2nd. And they'll have a full conversation about all the issues in connection with the border.
Q What do you expect to be on the agenda for the President's meeting with Putin?
AMBASSADOR BOLTON: Well, I think all of the issues that we have on security issues; on arms control issues; on regional issues, including the Middle East - I think it will be a full agenda. I think it will be a continuation of their discussion in Helsinki.
Q Thank you so much, Ambassador. Two questions about Brazil since you are heading there on Thursday to meet with the new incoming President from Brazil, Jair Bolsonaro. One on trade that I know is one of the priorities: For the past few years, Brazil had a trade surplus with Brazil.
AMBASSADOR BOLTON: The United States had a trade surplus with Brazil?
Q Just last year, $27 billion alone. And besides of that, President Trump complained about the Brazilian protectionism. He said Brazil is one of the "toughest" on trade access. What should we expect - related to trade relationship with Brazil - with the new Brazilian government? Should we expect more cooperation or more tariffs like those on steel and aluminum?
And another one on Venezuela that I know is another priority of the meeting. What kind of cooperation are you expecting with the new Brazilian government? Are you guys going to discuss sanctions?
