Trump's trade adversary prepares for upcoming attacks
In current circumstances, Peter Navarro is serving time in a Miami prison, wearing inmate number 04370-510. If Donald Trump manages to reclaim the White House in November, there's a good chance that Navarro will once again exert considerable influence over US trade policy. The potential second season of "Trump in the White House" is anticipated to kick off in January, with Navarro, a key player who fiercely advocated for global trade barriers during Trump's first term, being front and center.
Navarro, an economist, served as Trump's economic advisor and played a significant role in triggering trade wars, such as the one with China, and imposing tariffs on European companies. He is an outspoken opponent of free trade, championing the "America First" ideology, and views China as a ruthless adversary that uses job destruction tactics against the US.
During Trump's chaotic presidency, Navarro was widely regarded as "especially disruptive, bitter, and vengeful," according to the "Wall Street Journal." Some of Trump's inner circle even excluded him from certain trade negotiations, yet Trump's favor never wavered.
If Trump manages to defeat incumbent Joe Biden in November, Navarro could re-emerge as a crucial figure. In an interview with the newspaper, Trump expressed, "I would definitely bring Peter back."
Behind the prison bars, Navarro has been visited by Trump's son, Donald Jr., and conservative commentator Sergio Gor, who plans to publish Navarro's new book "The MAGA Deal" in mid-July – almost exactly on the day of Navarro's release from prison. Navarro has penned this book during his incarceration, and it appears to be a treatise on protectionism.
The book, composed of "100 things that can be done in 100 days," strives to encourage Americans to buy products made in the USA and relocate production to the US. Navarro aims to shield the nation from foreign competition through tariffs, citing the US's reliance on the global economy as a significant vulnerability, particularly in defense, technology, and pharmaceuticals.
Aiming at Germany
Navarro holds a radically mercantilist stance, viewing trade as a contest and trade surpluses as a sign of national prosperity. To him, the US trade deficit symbolizes weakness, a notion that aligns with Trump's worldview.
Among his top priorities is raising existing tariffs and imposing new ones. The "Economist" describes Navarro's upcoming book, following an email interview, as a "dark, avenging vision for the global economy." His protectionist ideology is not just directed at China, but at the world, including Europe.
Navarro believes that numerous European countries have succumbed to China's influence to form a unified front. He laments the UK's addiction to Chinese capital, as well as Greece, Italy, and Germany's heavy dependence on exports to China.
In Navarro's perspective, the US has been victimized by unfair trade practices that it should have prevented. He views allies as mere competitors that cheat and dump, suggesting that Trump might re-introduce tariffs on aluminum and steel, which Biden lifted. According to the White House, Trump introduced more new tariffs on imports than any other US president in nearly a century.
Trump's Proposed Tariffs
The costs of a new tariff offensive would be immense – initially for US consumers, as these essentially act as a tax increasing the cost of goods. Moreover, tariffs designed to protect one industry often harm others. Higher aluminum and steel prices in the US make manufacturing items such as cars, skyscrapers, tin cans, or refrigerators more expensive. Multiple studies suggest that US consumers absorbed the brunt of Trump's tariffs.
New tariffs could provoke retaliation from affected countries, with their own tariffs serving as a response. A trade war would constitute a massive tax on cross-border transactions, making international trade less desirable.
Trump's proposed measures surpass the tariffs that Biden imposed on China. Last summer, during an interview with "Fox Business," Trump suggested imposing a ten percent tariff on all imports to the US – regardless of the country of origin.
The "Economist" notes, "Sequels are never as good as the original," and if the original was already detrimental, it becomes even more crucial to fear the next installment.
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Despite these ongoing trade conflicts, Donald Trump's potential return to the White House could strengthen Protectionism in US trade policy. Navarro, Trump's former economic advisor and a vocal advocate for trade barriers and tariffs, has expressed his intention to continue promoting protectionist policies if Trump wins the election.
Navarro's new book, "The MAGA Deal," serves as a testament to his Protectionist ideology. In the book, he suggests encouraging American consumers to buy domestic products and imposing tariffs on foreign competitors, citing the US's reliance on the global economy as a significant vulnerability.
