Reagan Economist Says There’s A ‘Win-Win’ ‘Exit Strategy’ For Trump Tariffs

In the wake of dramatic tariff-driven stock market dips, Art Laffer laid out the blueprint on Tuesday for what he sees as a clear “win-win exit strategy” for President Donald Trump.

Laffer, who served as an economic adviser to the late President Ronald Reagan, explained that strategy in detail during an interview on Fox Business’ “Varney & Co.,” and argued that President Donald Trump’s initial plan — to use the tariffs solely as leverage for negotiating fairer trade relationships all around — was effectively an exit strategy from the start.

WATCH:

🚨Former Reagan Economic Advisor, Art Laffer, lays out his WIN-WIN Exit Strategy for Trump on Tariffs:

“I believe he can negotiate freer trade deals, get those tariffs way way down, much lower than they are now. By primarily those [countries] lowering their tariffs and us… pic.twitter.com/3TgjgO1Cdf

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“The win-win strategy is Trump is just phenomenal at negotiating, and Stuart, 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,” Laffer told host Stuart Varney, saying that the strategy was already paying off as country after country came to the table to strike deals.

“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,” Laffer added. “By primarily those people lowering their tariffs and us keeping ours low, or even going lower. It’ll be a win-win.”

Laffer noted that Trump had to push 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.

“The world will prosper, we’ll have a great economy, and the U.S. will be in perfect, beautiful shape for economic growth,” Laffer added. “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.”