Trump’s top economic adviser admits US will ‘suffer’ from escalating trade war with China

Donald Trump continued to defend his country's escalating trade war with China as his top economic adviser admitted that the US will “suffer” because of the latest tariffs.The president claimed that “we are right where we want to be” as he insisted that the import tax increase from 10 per cent to 25 per cent would bring in tens of billions of dollars.He also repeated his claim that the the tariff rises on $200bn of Chinese goods would eventually benefit “starving people in nations around the world”.“Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries,” he wrote on Twitter. “We will then spend (match or better) the money that China may no longer be spending with our Great Patriot Farmers (Agriculture), which is a small percentage of total tariffs received, and distribute the food to starving people in nations around the world! GREAT! MAGA.”However, Larry Kudlow, the director of the National Economic Council, the principal forum used by the president to consider economic policy matters, acknowledged that American companies and consumers would pay more as a result of the tariff increases. Asked on Fox News if that was the case, he replied: “Yes, to some extent”. He added: ”I don’t disagree with that. Again, both sides ... both sides will suffer on this.”However, he continued to claim that it was “worthwhile” because of the possible improvement in trade if the US and China reach a deal.His comments appeared to contradict Mr Trump’s previous claims that Chinese companies would pay the tariffs.Mr Kudlow himself, has previously claimed that the trade war between the United States and China would end in a “pot of gold”.China has not yet announced its response, but regulators in the country have threatened “necessary countermeasures”.It has also been reported that US companies in China are being targeted by delays in customs clearance for shipments and the issuing of business licenses.China matched Mr Trump’s earliest tariff hikes last July but is said to be running out of goods to tax due to the lopsided trade balance.Forecasters warned that the US tariff hikes could knock 0.5 per cent off China’s annual economic growth, which currently stands at 6.9 per cent. The US growth rate is around 2.2 per cent.China’s state newspaper The People’s Daily said the tariff hikes were “nothing to be afraid of”.Considered a mouthpiece for the country's government, its editorial added: ”The US-instigated trade war against China is just a hurdle in China’s development process. It is no big deal.”Additional reporting by Associated Press