Kudlow Says Trump Backs Strong Dollar as He Joins Administration

© Bloomberg. Stacks of $1 dollar notes bearing the name of U.S. Treasury Secretary Steven Mnuchin move through a machine at the U.S. Bureau of Engraving and Printing in Washington, D.C., U.S., on Wednesday, Nov. 15, 2017. A change in the Senate tax-overhaul plan that would expand a temporary income-tax break for partnerships, limited liability companies and other so-called

(Bloomberg) — Larry Kudlow, the incoming White House economic adviser, said he believes that President Donald Trump doesn’t want to see the value of the dollar go down.

“A great country needs a strong currency, he knows that,” said Kudlow, after being chosen to replace Gary Cohn as director of the White House National Economic Council. “I have no reason to believe that President Trump opposes a sound and stable dollar.”

Kudlow, an economist and CNBC contributor, offered his views on the dollar in an interview on the network Wednesday shortly after the White House announced he would take the role.

“I’m not saying the dollar has to go up 30 percent. I’m just saying, let the rest of the world know that we are going to keep the world’s international reserve currency steady,” Kudlow said. “That creates confidence at home and confidence overseas.”

Kudlow, who previously had criticized Trump’s tariffs policy, also said he is “on board” with duties Trump has imposed on steel and aluminum imports. He said he was encouraged by the president’s move to grant temporary waivers to allies including Canada and Mexico.

Kudlow also indicated the administration was readying a larger round of tariffs against Chinese imports. China has earned a “tough response” for not playing by the rules of trade, he said.

Earlier this month, he wrote a column for CNBC describing the president’s tariffs as “a regressive tax on low-income families.”

“Trump should also examine the historical record on tariffs, because they have almost never worked as intended and almost always deliver an unhappy ending,” Kudlow wrote in the March 3 column, which also included praise for other parts of the president’s economic agenda. Kudlow has strongly backed the tax overhaul that Trump signed at the end of last year.

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