Larry Kudlow: Dairy blocking trade deal with Canada

National Economic Council Director Larry Kudlow on the state of the U.S. economy and job market, trade talks with Canada and China and the potential for regulations of social media networks.

White House Economic Advisor Larry Kudlow on Friday said the dairy industry continues to hold up a trade deal with Canada.

“The word that continues to block the deal is M-I-L-K,” Kudlow told FOX Business’ Stuart Varney. “Let go-- milk, dairy drop the barriers, give our farmers a break” he said.

U.S. Trade Ambassador Lighthizer on Thursday met with Canadian counterpart Foreign Affairs Minister Chrystia Freeland to grind out a deal that would allow Canada to remain on the North American trade bloc.

It is unlikely a deal will be reached today, according to FOX Business and the Canadians are set to return next week to resume talks.

Regardless, Kudlow stressed the U.S. will hold out for the best possible terms of any deal.

“Ambassador Lighthizer, we met yesterday with the president and so forth. We’re all working hard and I think the United States would rather have a trade deal with Canada, but it has to be a good deal.”

President Trump on Wednesday said “intense” negotiation’s over a new North American Free Trade Agreement should result in a “fair deal” for the United States.