Larry Kudlow: Experts Wrong on Trump's Trade Policy and Economic Impact

Economic Predictions vs. Reality

• 🎯 Experts, particularly "lefty mainstream conventional wisdom experts," were wrong in predicting a continuous stock market crash, sky-high inflation, and recession six months into President Trump's second term.
• 📈 Instead, the opposite is occurring: the country is doing well, the Wall Street Journal poll shows nearly half of voters rate the economy as good or excellent, and the S&P 500 is up 28% in four months.

Trade Policy and International Relations

• 🤝 There has been no trade retaliation and therefore no trade war, contrary to expert predictions.
• 🌍 Countries around the world want to do business with the United States and President Trump, viewing him as a man of action who defends America and is willing to make deals.
• 💡 The current situation is seen as a peaceful resolution of trade differences and the broken world trading system, a positive contribution by Mr. Trump that experts missed.

Recent Trade Deals and Future Negotiations

• ✅ Recent trade deals with Japan, Indonesia, the Philippines, and the United Kingdom confirm Trump's stance on standing up for American economic interests while being willing to make fair deals.
• 🤝 Potential positive outcomes are anticipated from upcoming meetings with EU President Ursula von der Leyen and continued progress with China, despite it being the biggest unresolved issue.

Tariff Impact and Economic Strategy

• 📊 A Wall Street Journal headline suggests Trump's tariffs are being absorbed by corporate America, with neither consumers nor foreign countries bearing much of the burden.
• 💰 The potential tariff revenues, estimated at nearly $500 billion per year, could be used as part of a full-scale flat tax and simplification plan.
• 🇺🇸 Trump's "America First" trade policy, asking foreign countries to pay a modest sum for doing business in the US, is performing well, contrary to expert opinions.