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Larry Kudlow: President Donald Trump was right about tariffs
In case you didn’t see it, late Friday afternoon President Trump posted an op-ed piece on the Wall Street Journal website entitled: "My Tariffs Have Brought America Back," and it appeared in the Saturday morning print edition. I don’t think people focused on it because everybody was talking about Mr. Trump’s superb nomination of Kevin Warsh to be Fed chairman. Yet it’s worth revisiting his piece, which is kind of a rebuttal to all the criticisms by the Wall Street Journal Editorial Board, regarding Mr. Trump’s tariff policies.
Anyway, the President makes a lot of important points. For one thing, he notes that there was never any retaliation against his tariffs, and therefore all the Smoot-Hawley 1930s talk turned out to be false alarms. Instead of retaliation, there were deals, and Mr. Trump points out deals with Communist China, Great Britain, the European Union, Japan, and a number of countries in Southeast Asia. Yet as he said, the deals reduced barriers for American exports, and may have well led to stock market booms, not only here in America, but in all the countries that came to the dealmaking table.
Meanwhile, I’ll just insert that Smoot-Hawley raised tariffs to 60 percent or 70 percent. Yet most of the effective Trump tariffs are really closer to 15 percent. And as the president points out, a couple of $100 billion in tariff-related revenues have helped lower the budget deficit by as much as 27 percent. American exports are way up, imports are lower, and the trade deficit has narrowed substantially.
www.foxbusiness.com
In case you didn’t see it, late Friday afternoon President Trump posted an op-ed piece on the Wall Street Journal website entitled: "My Tariffs Have Brought America Back," and it appeared in the Saturday morning print edition. I don’t think people focused on it because everybody was talking about Mr. Trump’s superb nomination of Kevin Warsh to be Fed chairman. Yet it’s worth revisiting his piece, which is kind of a rebuttal to all the criticisms by the Wall Street Journal Editorial Board, regarding Mr. Trump’s tariff policies.
Anyway, the President makes a lot of important points. For one thing, he notes that there was never any retaliation against his tariffs, and therefore all the Smoot-Hawley 1930s talk turned out to be false alarms. Instead of retaliation, there were deals, and Mr. Trump points out deals with Communist China, Great Britain, the European Union, Japan, and a number of countries in Southeast Asia. Yet as he said, the deals reduced barriers for American exports, and may have well led to stock market booms, not only here in America, but in all the countries that came to the dealmaking table.
Meanwhile, I’ll just insert that Smoot-Hawley raised tariffs to 60 percent or 70 percent. Yet most of the effective Trump tariffs are really closer to 15 percent. And as the president points out, a couple of $100 billion in tariff-related revenues have helped lower the budget deficit by as much as 27 percent. American exports are way up, imports are lower, and the trade deficit has narrowed substantially.
LARRY KUDLOW: Trump Was Right About Tariffs
President Trump's policy of trade reciprocity has contributed to the Trumpian economic boom
www.foxbusiness.com
