China trade deal must be in America's best interest: Larry Kudlow

White House economic adviser Larry Kudlow said that President Trump is optimistic on the prospect of reaching a trade deal with China – as long as it meets certain conditions. 

“[Trump] believes that China would like to have a deal,” said Kudlow to FOX Business’ Stuart Varney on Tuesday. “But he has also told me [on] a number of occasions any deal between the two countries has got to be in American interests without any question.”

Kudlow said Trump’s meeting with Chinese President Xi Jinping during the Group of 20 (G-20) summit in Buenos Aires, presents a good chance to squash the retaliatory exchanges that the world’s two largest economies have been engaged in since July.

“They will be meeting in Argentina,” he said. “I and many others will be there and we will see how it turns out. You’re not going to get a deal unless it suits American interest. That’s a key point that President Trump is making.”

According to Kudlow parts of the deal must include intellectual property and tariff protection. 

Trump, in September, imposed a 10 percent tariff on $200 billion worth of Chinese goods that includes a 25 percent increase by the end of the year.

Trade-sensitive shares such as Boeing and 3M contributed to a sharp drop in the Dow Jones Industrial Average on Tuesday.