On Trade, President Trump Knows When To Thrust and When To Parry

When will even critics admit that President Trump’s trade strategy is working?The European Union deal is another example. And there’s no world trade war, no tariff retaliations. As usual the so-called experts are wrong.Mr. Trump’s bilateral approach is remaking the world trading system that has been broken for the past three or four decades.The WTO couldn’t create a fair and balanced trading system.Other multilateral globalist institutions couldn’t do it, but Mr. Trump is doing it singlehandedly.And he’s doing it in a way that is in the main, reducing tariff and non-tariff barriers around the world.It is surely opening up markets to American businesses on the farm or in the factory.The EU, United Kingdom, Vietnam, Japan, Philippines, Indonesia, and much more to come.Communist Chinese negotiations started today amid reports that they will extend the August 12 deadline by another 90 days to allow for more time for negotiations.For most of these deals, Mr. Trump is charging a template of a modest 15 percent toll.A very small price to pay for participating in the most vibrant economy in the world with the strongest consumer interest.And that modest price could yield something like $400 billion per year in tariff-related revenues to cut taxes, or lower the deficit, or even eliminate debt.Yet here’s another important point, the deflationary impact of a mild tariff will be vastly overwhelmed by the $5 trillion or $6 trillion of direct investment pledged by foreign countries and investors coming into the American economy.That point is being overlooked. It’s a massive infusion of cash to America that will offset any tax deflation.Wall Street and the Fed were always wrong about inflation because the money supply has been quiet for the last couple of years.People on the left and even some on the right have gone hysterical over tariffs.They never understood that Mr. Trump is the dealmaker in chief.He knows when to thrust and when to parry. And he also knows that America must come first.From Mr. Kudlow’s broadcast on Fox Business Network.

On Trade, President Trump Knows When To Thrust and When To Parry

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