EXCLUSIVE — As the White House begins imposing severe taxes on both enemy and traditional U.S. friends, President Donald Trump‘s leading trade adviser promises a” architectural realignment” of the global economy.
In his first term, Trump used the levies as a last-ditch tool, but his administration has indicated it may work even more violently once he has returned to the White House.
According to Navarro,” this is about a basic “back to the future” fundamental realignment of an British economy that will return to its production roots as well as restore tariffs as a main source of government revenues, as they were from Hamilton and Jefferson to McKinley’s days.”
Since NAFTA and China’s accession to the WTO, which generally tore America off, is the biggest economic change in history, he continued. ” What we’re doing is putting Humpty Dumpty back up again, and it can be done this time.”
TRUMP ANNOUNCES RECIPROCAL TARIFFS THAT WILL BE DETERMINED ON A’ COUNTRY-BY-COUNTRY’ Foundation
Driving opportunities in developing
Economists remain watchful of Trump’s tax plan, predicting businesses may go the charges to American consumers. Mark Zandy, Moody’s chief economist, estimated that Trump’s taxes” may reduce the actual purchasing power of the typical American household by between$ 200 and$ 250 a time”.
However, Navarro argued that Trump’s policies may generate new expense in U. S. production in order to bypass the tariffs immediately.
” We had$ 15 billion of funding following the 2018 levies from domestic producers only. You’ll notice them, domestic and foreign suppliers, set up around on American soil and expand”, Navarro predicted.  ,
Trump has started imposing blanket 25 % tariffs on all imports of steel and aluminum, as well as introducing new reciprocal tariffs on all U.S. trade partners to help offset trade imbalances.
The president has even placed 10 % level tariffs on Chinese imports and hinted that he plans to reveal individual charges for imported cars, medicine, electronics, and hardwood as soon as next month.
The no exemptions legislation, which forces them to either visit or pay the taxes, is beautiful. We like that too”, Navarro said.
TRUMP SLAPS 25 % Taxes ON STEEL AND ALUMINUM Goods
Supply vs. desire
Economists claim that British production of steel and metal is insufficient to cover up consumer price increases, a fact that the White House has vehemently acknowledged.
” We won’t be able to meet demand tomorrow”, one top White House aide assessed Tuesday.
However, Navarro told the Washington Examiner that after American businesses, especially in the automobile market, shore up local supply chains, Trump’s tariffs may prove to be a “great gift for them”.
” The auto industry, America’s auto industry, domestic industry will love auto tariffs”, he insisted. ” What Ford, Stellantis, GM have to figure out quickly is , how to get supply chains on shore ramped up and producing domestic cars. It’ll be a huge help for them, and the steel and aluminum tariffs will work together to help them.
Trump made his announcement to pursue reciprocal tariffs earlier this month, but he declined to provide an implementation schedule for when and to what extent new tariffs will be imposed on U.S. trading partners.
Not concerned with China.
Trump’s trade team, which includes Navarro, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and other members of the Cabinet, has previously disclosed to the Washington Examiner that the administration will conduct a review and make recommendations to the president for each nation where the U.S. sees a trade deficit.
Navarro reiterated that the president’s team is focused on resetting all U.S. trade relationships, not just the imbalance with Asia. He declined to provide specific insight into that process.
The U. S. had trade deficits with nine of its top 10 partners last year, accounting for a rough imbalance of$ 1 trillion. That list included goods deficits of$ 295.4 billion for China,$ 171.8 billion for Mexico, and$ 123.5 billion for Vietnam.
With his new executive order removing those carvedouts, Trump previously granted exemptions on steel tariffs to countries like Canada and Australia.
” This is not about China”, Navarro said. ” This is about unfair trade practices around the world,” the author writes.
White House officials stress that the president’s reciprocal tariffs, at least for now, will likely cover all of a country’s exports to the U. S. as opposed to individual, specific goods.
Nevertheless, Navarro acknowledged that Trump will make that choice and might change his mind.
” The president is always right. He’s taken some questions and said he’ll listen. That’s what I love about the boss. He never says ‘ never,'” he said.
TRUMP MIGHT USE TARIFFS TO FORCE ARAB COUNTRIES TO PERMIT PALESTINIAN REFUGES.
Trump has signaled a willingness to grant tariff exemptions in exchange for non-trade-related concessions. He threatened 25 % tariffs on all imported Canadian and Mexican goods last month, but he eventually put them on hold as a result of those nations ‘ leaders ‘ commitments to border security and drug smuggling.
” But here’s what’s important about steel and aluminum: This is clearly a case of let’s not get fooled or taken advantage of again”, Navarro added. Every nation, strategic rival and ally alike, that received a ban on the 2018 aluminum and steel tariffs abused that right and flooded our markets with it.
