It took little time for Trump's chief China trade war advisor Larry Kudlow to respond to China's publication of its "retaliation list" itemizing the $60 billion in US goods that will be subject to US tariffs. Saying that the $60 billion trade response by China might be weak, Kudlow warned that the US has more ammunition than China in a trade fight, envisioning that the US imports more products from China than vice versa. 

Predictably, Kudlow focused on China's currency devaluation response as the trade war recently shifted to currency war as Beijing hopes to offset the impact of tariffs using a weaker currency.

Speaking on Bloomberg TV, Kudlow correctly noted that the yuan has fallen in part because China has "stopped defending the yuan.