The public and private feuding over how to resolve America\u2019s trade disputes comes as the president prepares to meet with China\u2019s president and as the White House considers tariffs on cars.<\/b>
\nWASHINGTON \u2014 President Trump\u2019s trade war is stoking an internal fight among his top economic advisers, with officials sparring both publicly and behind the scenes over the White House\u2019s approach to dealing with China, the European Union and other trading partners.
The disagreements spilled into view on Tuesday as Larry Kudlow, the director of the National Economic Council, accused Peter Navarro, a top trade adviser, of doing the president \u201ca great disservice\u201d by making hawkish comments about trade talks with China.
Mr. Kudlow said Mr. Navarro\u2019s speech last week \u2014 which included a prediction that Mr. Trump would have the \u201ccourage\u201d to reject a bad trade deal with China \u2014 was \u201cnot authorized\u201d by the administration.
\u201cI think Peter very badly misspoke,\u201d Mr. Kudlow said on CNBC. \u201cHe was freelancing, and he\u2019s not representing the president or the administration.\u201d
He added, \u201cI actually think he did the president a great disservice.\u201d
The internal feuding comes at a pivotal moment, as Mr. Trump prepares to meet with President Xi Jinping of China at the Group of 20 summit meeting in Argentina this month and as the White House economic team considers whether to impose tariffs on cars from Europe, Japan and other nations.
Europe\u2019s top trade negotiator, Cecilia Malmstrom, is expected to meet with the United States trade representative, Robert E. Lighthizer, on Wednesday to discuss a framework for beginning formal trade talks.
Mr. Trump\u2019s trade advisers are so far split over the president\u2019s desire to impose tariffs on foreign cars and car parts, with Mr. Kudlow and Treasury Secretary Steven Mnuchin privately cautioning against such a move and Mr. Navarro pushing for tariffs as a way to gain greater concessions from Europe and Japan, according to people familiar with the discussions.
Mr. Kudlow, Mr. Mnuchin and others in the administration have also been encouraging Mr. Trump to make a trade deal with China and to forgo the additional tariffs he has threatened to impose on all Chinese imports. Mr. Navarro, in his speech last week, said China was not playing fair and was simply trying to get the United States to the table to improve its global image.
\u201cThey want to get us to the bargaining table, sound reasonable, talk their way and have their way with us,\u201d Mr. Navarro said at the Center for Strategic and International Studies, a nonpartisan Washington think tank.
Mr. Navarro also lashed out at Wall Street executives with links to the administration who have been encouraging Mr. Trump to strike a quick deal.
\u201cIf there is a deal \u2014 if and when there is a deal \u2014 it will be on President Donald J. Trump\u2019s terms. Not Wall Street terms,\u201d Mr. Navarro said in his speech on Friday. \u201cIf Wall Street is involved and continues to insinuate itself into these negotiations, there will be a stench around any deal that\u2019s consummated because it will have the imprimatur of Goldman Sachs and Wall Street.\u201d
On Tuesday, Mr. Kudlow, an avid free trade proponent who generally opposes tariffs, said that Mr. Navarro was \u201cway off base.\u201d
As the administration\u2019s most vocal critic of China, Mr. Navarro has previously clashed with Mr. Trump\u2019s more business-minded advisers, including Mr. Mnuchin and Gary D. Cohn, who resigned as head of the National Economic Council over concerns about Mr. Trump\u2019s protectionist trade approach.
More recently, Mr. Navarro has increasingly been at odds with Clete Willems, a deputy director of the economic council who has been pushing back against auto tariffs, according to people familiar with the matter.
Mr. Navarro, who continues to have Mr. Trump\u2019s ear, declined to comment.
The dissension came as Mr. Trump\u2019s economic team was scheduled to meet at the White House on Tuesday to discuss a Commerce Department investigation into whether auto imports pose a threat to national security. Such a determination could lay the foundation for the White House to impose tariffs on imported cars and car parts under Section 232 of the Trade Expansion Act.
The report, which must undergo an interagency review process, is expected to outline a range of actions that Mr. Trump could take if he wants to limit imports \u2014 from doing nothing to placing tariffs or imposing quotas.
Mr. Trump could hold off on announcing the tariffs as talks proceed with Europe. However, he has been increasingly frustrated by the lack of progress in negotiations.
During an interview with The Wall Street Journal last month, Mr. Trump made clear that he planned to keep car tariffs as an option as discussions with Europe proceeded.
\u201cIf they don\u2019t do the right thing, I\u2019ll put tariffs on the cars,\u201d Mr. Trump said. \u201cAnd if they do, there won\u2019t be any tariffs.\u201d
Industry lobbyists and analysts have warned that imposing tariffs on cars would be tantamount to a disaster, with large swaths of the Midwest auto industry hurt by such a move.
\u201cWe\u2019ve made clear we think the imposition of tariffs under Section 232 for autos or parts would be harmful to the auto industry and harmful to the economy,\u201d said Matt Blunt, the president of the American Automotive Policy Council. \u201cWe\u2019re certainly hopeful that the report won\u2019t recommend the imposition of new tariffs or quotas.\u201d
Earlier this year, the United Automobile Workers union urged the Commerce Department to take a targeted approach to any protectionist measures.
\u201cThe automotive industry is a global industry with long, complicated supply chains,\u201d the group said. \u201cWe caution that any rash actions could have unforeseen consequences, including mass layoffs for American workers.\u201d
Mr. Kudlow did not comment on the prospect of auto tariffs but suggested that despite Mr. Navarro\u2019s recent remarks, talks with China were moving on a constructive path. He said Mr. Mnuchin was having discussions with his Chinese counterpart and that there were communications happening at all levels of both governments.
\u201cI think it\u2019s better to talk than not talk, so that\u2019s a plus,\u201d Mr. Kudlow said.<\/p>\n