Noted Reagan Economist Says There's a ‘Win-Win Exit Strategy’ for Trump's Tariff Gambit

AP Photo/Mark Schiefelbein

As virtually the entire country — not the least of which are the social media keyboard jockeys — continues to follow the latest White House developments and stock market reactions to President Donald Trump's currently-fluid "reciprocal tariffs" policy on products imported to the U.S. from much of the world, a noted former economic advisor to President Ronald has explained how Trump can create a "win-win" exit strategy.

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That is, as author and economist Arthur Laffer explained during an interview on Fox Business’ “Varney & Co.,” that Trump’s initial plan — to use tariffs solely as leverage for negotiating fairer trade relationships all around — was effectively an exit strategy from the start.

Laffer began (emphasis, mine):

The win-win strategy is Trump is just phenomenal at negotiating, and ... what he says is extremely true: these people have far higher tariffs and non-tariff barriers and quotas than we do

It is unfair, it has been done, but what he’s done now is gotten them into a position where they’re going to lose their access to the U.S. market if they don’t redress these types of inequities that they’ve done, and Trump is the master negotiator.

This is exactly what he does beautifully and wonderfully, and I believe he can negotiate freer trade deals, get those tariffs way, way down, much lower than they are now. By primarily those people lowering their tariffs and us keeping ours low, or even going lower. It’ll be a win-win.

That said, let's go bottom line: Predictions from every direction about the ultimate outcome of Trump's reciprocal tariff strategy remain just that — predictions. 

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The ultimate outcome is unknowable, which is why I called it a gambit. 


READ MORE:  'Messes Everything Up': Musk Appears to Split With Trump, Navarro on Tariffs

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Call it a "high-stakes risk," taken presumably based on one's knowledge and experience, or whatever other term, but the facts remain the same — on multiple levels. 

Laffer told Varney he believes Trump had to go ahead with implementation for the threat of tariffs to be great enough to bring countries to the table but that it already appeared to be playing out as he’d expected while predicting:

The world will prosper, we’ll have a great economy, and the U.S. will be in perfect, beautiful shape for economic growth. The exit strategy is he doesn’t impose those tariffs, he takes those tariffs away, he even reduces our tariffs on those countries if they will eliminate their tariffs on us. That would be the exit strategy that would be a win-win, win-win.

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Sounds awesome — if it happens. 

Resetting the game board in the world of international trade has been long overdue in this country. President Trump has an opportunity to rank among U.S. history's greatest presidents if he can accomplish the job — with fairness to all, as Laffer suggested. 

Editor's Note: President Trump is leading America into the "Golden Age" as Democrats try desperately to stop it.  

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