The coronavirus outbreak in China will delay the "export boom" of Chinese imports of U.S. goods and services, but the overall economic impact on the U.S. economy will be "minimal," White House economic adviser Larry said Tuesday. Kudlow.
Kudlow said the coronavirus outbreak, which has impacted more than 20,700 people with 427 confirmed deaths, is neither “a catastrophe” nor “a disaster” for the U.S. and the global economy.
However, it will limit China's ability to step up its purchases in the short term, meaning the anticipated increase in exports will take longer to be felt.
“It’s true that the export boom from this [phase one] trade deal will take longer [to take effect] because of the virus,” Kudlow said on Fox Business News.
China has committed to purchasing US $ 76.7 billion worth of goods and services from the US in 2020, in addition to the 2017 benchmark, including US $ 12.5 billion worth of agricultural products such as soybeans, corn, ethanol, wheat and meat.
“People should be very calm about this [the economic impact of the outbreak],” Kudlow said, adding that the impact on the US economy would be “minimal”, which he estimated at 0.2% in the current quarter.
He added that the delay in Chinese purchases will be partially offset by increased trade following the ratification of the USMCA trade deal last month by the US Congress.
Source: Agricensus
