Economist Art Laffer, speaking on “Varney & Co,” hailed President Trump’s tariffs as a strategic approach to enhance trade negotiations beneficial to both the U.S. and the global economy. He and Stephen Moore penned an article advocating a ‘win-win exit strategy’ that highlights Trump’s prowess in negotiations, pointing out that foreign nations currently impose higher tariffs compared to the U.S.
Laffer emphasised that international competitors face the risk of losing access to the U.S. market, compelling them to reconsider their unfair trade practices. He believes Trump’s mastery in negotiation can lead to reduced tariffs, fostering a mutually beneficial environment.
Recently implemented tariffs by Trump, including a 10% baseline levy and specific higher tariffs for countries with significant trade deficits, have sparked reactions from foreign nations eager to negotiate trade terms. Treasury Secretary Scott Bessent remarked that approximately 70 nations have now approached the U.S. regarding negotiations.
Laffer articulated that Trump’s strategy of utilising tariffs could potentially lead to a scenario where tariffs are removed entirely in exchange for foreign nations lowering their own. He warned, however, that prolonged tariffs could invite disaster for both the U.S. and the global economy if they escalate further.
He concluded that reducing tariffs on both sides is crucial—by lowering U.S. tariffs in tandem with foreign nations, both economies stand to gain significantly. Laffer suggested that the ongoing negotiations could ultimately affirm the strength of the U.S. economy while encouraging fairer trade throughout the world.
Economist Art Laffer endorses Trump’s tariffs as a negotiation tool that could lead to mutually beneficial trade deals with numerous countries. Anticipating talks with up to 70 nations, Laffer suggests that reducing tariffs can strengthen the U.S. economy while fostering more equitable global trade. He warns, however, that prolonged tariff enforcement could have dangerous economic repercussions.
In summary, Art Laffer views Trump’s tariffs as a strategic tool to encourage trade negotiations that could benefit both the U.S. and other countries. As nations seek trade deals amidst new tariffs, the potential for lowered trade barriers stands to promote economic growth. Ultimately, the success of this approach hinges on effective negotiation and cooperation to ensure that tariffs do not lead to detrimental economic consequences for any party involved.
Original Source: www.foxbusiness.com
