Larry Kudlow: Trump Was Right About Tariffs and Economic Growth

Trump's Op-Ed on Tariffs

• 💡 President Trump posted an op-ed in The Wall Street Journal asserting that his tariff policies have been successful and beneficial for the US economy.
• 🎯 The piece serves as a rebuttal to criticisms, particularly from the Wall Street Journal editorial board, regarding his approach to trade.

Economic Impact of Tariffs

• 📊 Trump argues that his tariffs did not lead to retaliation as predicted, but instead resulted in deals with various countries including China, the UK, the EU, and Japan.
• 📈 These deals reportedly reduced barriers for US exports and contributed to stock market booms both domestically and internationally.
• 💰 Trump's tariffs, generally around 15% (compared to Smoot-Hawley's 60-70%), generated significant revenue, helping to lower the budget deficit by up to 27% and narrowing the trade deficit.

Supporting Evidence and Investment

• 🔬 A Harvard Business School study is cited, suggesting that foreign producers and non-US corporations bear at least 80% of the tariff costs.
• 🚀 Trade deals prompted by tariffs have reportedly generated substantial foreign investment in the US, with figures ranging from $9.6 trillion to $18 trillion.

Tariffs as a Diplomatic Tool

• 🌍 The op-ed highlights the use of tariffs as an important national security and international diplomacy tool.
• ✅ An example is given of an agreement with India to stop buying Russian oil in exchange for the US lowering tariffs on Indian goods, demonstrating the intersection of trade and foreign policy.