Larry Kudrow: Trump’s trade strategy is working

When will even critics admit that President Trump’s trade strategy is working? EU trading is another example. And there is no World Trade War or retaliation for tariffs. As always, the so-called experts are wrong.

In fact, his bilateral approach is reshaping the global trading system that has been broken for the past 30 or 40 years. The WTO failed to create a fair and balanced trading system. Other multilateral globalist institutions have not been able to do that, but Trump is doing it on his own. And he does that in his main way, reducing tariff and non-tariff barriers around the world. Certainly, they are opening the market to American businesses on their farms and factories. EU, UK, Vietnam, Japan, Philippines, Indonesiaand more coming.

China’s negotiations began today In reports that negotiations could be increased to extend the August 12 deadline for another 90 days. For most of these transactions, Trump charges a modest 15% toll template. Very few prices paid for participation in the world’s most vibrant economy, with the interest of the strongest consumers. And a modest price that could generate something like $400 billion a year Customs related revenues They may even cut taxes, lower deficits, or eliminate debts.

But there’s another important point. The impact of mild tariff deflation is extremely overwhelming with the $5 trillion or $6 trillion direct investment pledged by foreign and investors in the US economy. That point is overlooked. This is a massive injection of cash into the US that offsets tax deflation.

Wall Street and the Fed have always been wrong about inflation as money supply has been quiet for the past few years. People on the left and even some on the right are hysterical about tariffs. But they didn’t realize that President Trump was the chief prime minister.

He knows when to stab and when to parry. And he also knows America must come first.