How good is this for the rest of us . Will this make any difference . Mr. Kudlow i think it is better than nafta. I think it is broader than nafta. It updates nafta. In some important new economy ways. You have domestic content and labor issues which have been resolved. I think financial and digital services. We will get a lot of investments. I pulled out some of the estimates. A lot of people were quoting numbers. On theve wide ranges u. S. Economy. This reflects uncertainties about better investment and better risktaking. That is a gigantic number. There was a very wide range of 35 basis points on 1. 2 . Those are big numbers. That is why we thought this was a template of a trade agreement. Is very growth substantial. Worker defense, domestic content, very substantial. Really, this is our big trade partner. I know china is a sexier topic. The reality is, total trade with is basicallyxico slightly more than twice what it is with china. Could this be a template for trade agreements . Mr. Kudlow i think so. We are also in negotiations with japan. We may be in negotiations with the United Kingdom if that works out. I think he is the best trade negotiator in the business. I think he has created a template. It will be a progrowth template. Lets go to the sexier topic, as you put it. The journal reported this morning that u. S. And chinese negotiators are planning to delay tariffs on imported chinese goods. Do you want to confirm that publicly . Mr. Kudlow i cannot confirm that. It was in the journal. It must be true. Mr. Kudlow i understand. [laughter] fabulous newspaper. My friend Henry Kissinger returned from a week and china. He reported back. The chinese hierarchy had a very positive attitude toward phase one. Ifm bound to say he has said it is not satisfactory, if it is not the kind of deal he wants, then the december 15 schedule tariffs will go back into place. So there is still a possibility . Mr. Kudlow yes. I dont want to sound pessimistic. If the short strokes remaining negotiations do not pan out to his liking, those tariffs could go back into place. How long will it take for us to get to a phase one deal . The president said last week we could wait till after the election. He is giving you a wide range of options. I would not want to comment any further. It is what it is. The president said it could go on so it could go on. The president is happy with the outcomes that are being negotiated by secretary mnuchin. It may work. Reported that agricultural purchases, getting china to commit to big purchases of u. S. Agricultural goods, is a sticky point. How is that going . Mr. Kudlow it is certainly a hot topic for conversation. What about chinese demand to rollback u. S. Tariffs . Mr. Kudlow i believe that is also part of the conversation. Thank you. [laughter] some people have called phase one a mini deal. How significant will it be . Arent we just going back to where we were before this . I have not read every detail. The Deputies Group is meeting almost daily or nightly. Things are moving. On intellectual property, on financial services, on currencies, a lot of the chapters have come beyond where we had advanced the ball. I have heard you and other members of the administration defends tariffs as a tactic toward a goal of lebron leveling the playing field. At the same time, we have heard on executive earnings calls and in interviews that the uncertainty is really making it hard for them to plan their budgets, their sourcing, their supply chain. It is not just china. We have had new tariffs announced on argentina and brazil. No, we have not implemented them. The administration had said it would. Haveudlow no decisions been made. The topic came up. I was uncertain about that. Mr. Kudlow proposed tariffs on france. The president threatened to impose tariffs on mexico and the did not. There are many executives who say this has caused them to hold back on investments. Are many economists who say this holdback is a significant reason for the global slowdown and the u. S. Economic slowdown. How do you respond . The u. S. Economy is in great shape and is getting better. We have had a year of stringent monetary tightening. Which i think is a key point. Now that the Balance Sheet is growing again, that is a good thing. We had very good productivity numbers this morning. A lot of economists will change their estimates. You are almost at 3 . That is very positive. I think america is working. These employment numbers have exceeded a most everybodys expectations. I would argue that america is working. We are seeing a worker boom. My old posts S Ronald Reagan used to call it takehome pay after taxes and inflation. It has increased. Im not sure we will have time. Put these i want to economic numbers and. Trade is very important. U. S. Economy is doing very well. America is working. We do want to go to the question. If we can put that up. Slowdown. Economic answering, we have one more question before we open it up for the audience. I really wanted to ask you, what are the prospects for another Trump Administration tax cut proposal before the election. Will get all the results at the end. Will the president propose another tax cut . If so, when and what are the parameters . Mr. Kudlow we are working on something called tax put cuts 2. 0. We are soliciting a lot of ideas from leading house and senate members. Outside experts and people in the administration. For individuals or companies . Mr. Kudlow i dont want to be specific. I can tell. Mr. Kudlow my guess is what are some of the options. Mr. Kudlow we will have a very strong emphasis on middleclass tax relief. We will improve business and individual reforms. What is the timeline . Mr. Kudlow i would not expect a product until well into 2020. Probably close to the election. It would be a postelection planning document. If elected, these are the kinds that a second term would have. Do you want to take it away . Questions for larry from the audience . Just a point of clarity, the president said he was raising tariffs on steel and aluminum from brazil and argentina because he felt they had been wrongly devaluing their currency. Maybe the rules did not go through. What youk you about just said. The china trade deal. That what is being negotiated now to move beyond what was already agreed to by the chinese in the spring. I know you do not want to get into too much detail, but can you give us a little bit more on those parameters and understanding about what additional headway has been made on some of the tougher issues . To openow i dont want up the details of the negotiation. It is very hard to do that. That, it looks to me like some of these key chapters i mentioned, i. T. Theft , currency stability, financial , opening upansion agriculture, not just purchasing of commodities but actually reducing nontariff barriers on agriculture. As well as actually spending. Because these things are not resolved, i cannot be too specific. We heard about those in the paper already. Those are not the real big issues like state subsidies and tech transfer. Mr. Kudlow this was always planned. Done is phase two. It is important to look at this in phases rather than one large discussion. Please tell us who you are. Thank you for being here. I hope you can give us some insight on how the white house balances the trade talks with endorsing congresss view of the hong kong protesters. Thinking maybe that gives the moderate forces in china less Maneuvering Room in a time we are talking to. How do you balance the priorities . Think therei dont is a direct link. The president has made it very clear that the united states, consistent with its long history , favors freedom and democracy. And human rights. These are separate tracks. Understand the difference between a trade track and a human rights track. There may be some spillover. We have very strong American Values that pertain to freedom. That is true for our entire history. Secretary pompeo has been very eloquent on this. Vice president pence has been very elegant. I understand they are related tracks. One last quick question if not im going to wrap it up. I have a question about Interest Rates. We are all operating in a lowinflation environment. We cannot foresee them going up anytime soon. There is pressure to keep bringing them down. How would your economic policies shift . Mr. Kudlow normalization would mean . Going up from doubling where they are today. Even tripling where they are today. The cost of money is mispriced today in my opinion. Mr. Kudlow global rates are very low. For a variety of reasons. , i dont normalizing need to pick at you, but i do not know what that means. I dont know what that means. The traditional idea of the term structure of Interest Rates and the outlook for inflation, for real growth, for hasrns on capital, that been upended in recent years. There is no inflation out there. I dont see why Interest Rates have to go up. The market determines most Interest Rates. I dont think that our central bank or other Central Banks should worry about growing Interest Rates. They should provide ample liquidity. The rates will take care of themselves. Volcker, boss, paul just passed away. He was a great man. Him in the 1970s. He never used my stuff. [laughter] but he was a brilliant man. He was exactly the right man the Company Country needed to stop inflation. He told me to come work for my boss. I dont think we have much to worry about. Do have a problem. The World Economy has slumped. Let us not forget, some of the incentive oriented supplyside policies that have worked throughout history. Namely, lower marginal tax rates. Rolling back unnecessary and excessive regulations. And attempts to reduce trade barriers. These are classic incentive oriented policies. My former boss ronald i think that is your problem. The central bank of session is wrong. They ought to look toward progrowth measures and the g7 will be here in the u. S. At cap david. Camp david. I will run that thing, and we sessions tothose what i call back to basics. We will devote the sessions to the need to restore World Economic growth. America, middle east, asia. There are few countries growing. Most are not. That is the biggest problem that faces us today. We must restore growth and prosperity, and lift the animal spirits the best we can. We will devote g7 efforts to that. I do not see that as a central bank function, but going back to old fashion supply side incentive oriented policies where we should reward success and not punish it. Good news on inflation unless youre trying to raise prices. Thank you. [applause] cspans washington journal, live every day with news and policy issues that impact you. It tuesday morning, eleanor clift, columnist for the daily beast discusses impeachment and campaign 2020. And thenews of the day book tipping point. Live washington journal, at 7 00 eastern tuesday morning. Join the discussion. Live campaign 2020 coverage continues tuesday at 11 00 a. M. Eastern. Senator Elizabeth Warren in boston. Watch the president ial candidates live on cspan, on cspan. Org, or listen on the cspan radio app. Trump, hisra daughterinlaw and campaign andsor joined politico members of congress and women executives. This panel looks at strides made by women in the workforce. Everyone. Mi am white house corporate and editor correspondent around associate editor at politico. Im going to be joined in just a minute on the stage by lara trump, a Senior Advisor to trumps campaign. Shes the president s daughterinlaw and she is trump. To eric please welcome her to the e