US, EU forming 'united front' against China

WASHINGTON, 04 Aug 2018 [Fik/News Sources]: The U.S. and EU are working to form a "united front" against China that could soon expand, President Donald Trump's top economic aide said Friday.

"We are coming together with the European Union to make a deal with them so we will have a united front against China," National Economic Council Director Larry Kudlow told Fox Business News.

"I think most of our trade team will tell you we're moving close on Mexico. So this unifies NAFTA and U.S., Europe, Australia, Japan. China is increasingly isolated with a weak economy," he said. "China knows what we are asking, they just have not made satisfactory responses."

The declaration comes amid a growing U.S.-Sino trade spat.

China announced earlier Friday it plans to impose tariffs of up to 25 percent on $60 billion of U.S. goods, as the trade salvos between the world's two largest economies continued.

"The Chinese had better not underestimate the determination of President Trump to follow through and seek zero tariffs and non-tariff barriers, and subsidies and a level playing field and major reforms in IP theft and forced transfer of technologies," Kudlow warned, referring to intellectual property. "These are the things we have asked them in a number of meetings."

The U.S.-China trade relationship is estimated at $650 billion annually.