Trump wants trade pact with China but must be 'right deal': WH advisor

President Donald Trump wants a trade agreement with China but it must be 'the right deal', White House economic advisor Larry Kudlow said on Tuesday.

Kudlow's remarks came as markets attempted a recovery from Monday's deep sell-off, prompted by a sudden escalation in the U.S-China trade since last week.

"The president was not happy with the progress" of talks in Beijing earlier this month, Kudlow told 'CNBC'.

"The president is defending the American economy" against "a lot of unfair trading practices."

Trump on Thursday announced new tariffs on another USD 300 billion in Chinese imports and on Monday responded to a drop in value of the yuan by formally branding Beijing a currency manipulator.

Beijing on Monday also said it was cutting off imports of U.S agricultural goods.

Kudlow said Trump "would like to continue negotiations, he would like to make a deal, it has to be the right deal for the United States."

After face-to-face meetings in Shanghai last week, U.S and Chinese officials are due to meet in Washington next month.

(Agencies)