Trump Economist on Tariffs and Tax Cuts in Second Term

Joseph Lavorgna, former chief economist at the National Economic Council under Donald Trump, discusses the economic priorities of the second Trump administration. He says tariffs will be used as a tool to leverage “very transactional,” fair trade deals and argues that the Jobs Act tax cuts paid for itself.
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[JulianBenjamind]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[hectorrodriguez]

The tax cuts paid for themselves? Source please.

[tedfisk]

Typical to say the tax cuts of 2017 paid for themselves. YEAH, BUT, it added trillions to the debt. If we gained back the revenue, then why was it not applied to the debt?

[billparis]

The copium from this guy is astounding. Tariffs will absolutely hit the market first, and will be wildly inflationary, especially having just come out of a previous inflationary period caused by Trump that hasn't even fully stabilzed. Even if they immediately increase drilling and energy production, those effects wont hit the gas pump for at least 6 months. Tariffs will be almost instantaneous, as the payments will become due immediately.

[suzanneheritage]

Here we go again another Trump explainer. "Trump doesn't really mean what he says." And if the 2017 tax cut was so successful, how come the deficit increased $8 trillion under Trump's watch. I think Joseph's boss said, "careful what you say about tariffs, Joe. We don't want to trigger the wrath of his majesty."

[Ceriden]

Good god. No the tax cuts, for the wealthy, did not pay for themselves.

Tariffs will rise prices, period. Even when it is used to promote domestic sources the prices will be raised. Furthermore Trump wants across the board tariffs on 10% percent or higher.

Examples for both would be the following. A widget costs $8 to import but domestically it costs $9. You would use a tariff to increase the import to $10 so it encourages the purchase of domestic. Now let's look at a blanket percentage (I'm also going to use incorrect math here but not incorrect results). Same costs as before but now the import will cost say $12. Do you honestly think the domestic will stay the same price? No, it will raise even though nothing changed on their side.

So yes either way you will pay more ie. inflation. Brilliant.

Now let's look at oil. The US, right now, is producing the most out of every country. The US, at least since '23 has produced more than any point during Trump. Our refineries are at capacity. But Trump wants to drill more, even though again we cannot refine more. But ok. Why would the oil companies ever want to do that? Right now they are making record profits. Why would they want to introduce more supply to lower that? You want to know something else, during Trump he told the Saudi's that they should lower supply to raise prices.

Now let's talk further tax cut to the wealthy and even his don't tax tips. I'll keep it simple. Trickle down does not work. We have had since Reagan to show this. All it does is increase the wealth of the wealthy. It does not add to the working class. Now let's talk tips. Taxing tips added money, and eligibility, to social security. But since that will be destroyed I guess that doesn't matter. Removing it is also unfair to the people that make the same amount only as a paycheck. But there is also one other big problem. The wealthy will now be paid in tips as another way to avoid paying taxes.

It cannot be stressed enough. Any tax cuts for the wealthy are price increases for the working class. Period.

I'll also add, as a final note, about Trump's obsession about tariffs. He points to the period of time and makes the declaration that the country was never more wealthy than then. But by country he means the wealthy because the rest of the people were very much poor. Also it helped lead the country into a little something called The Great Depression.

Trump, and Musk, have no business being anywhere near economic policy. That's not to mention what will happen to prices if mass deportations happen.

[deblevasseur]

Dont let them give tax cuts to the rich. We need to get together and do something about this now before it happens.

[Joe-tiqd]

Tariffs are one thing I'm not excited about. No matter how you slice it, tariffs make prices go up across the board. Not mention look what happened to soybean farmers in 2019. Ouch.

[richyaniga]

Donald Trump doesn't even understand how tariffs work

[kennixox]

Remember the days during Trump's last term when it was crashing by a 1, 000 points on the DOW for several days on end? It recovered but how quickly people forget.

[dugmandug]

The fact of the matter is poor people don't hire people but rich people or corporations.Do I rest my case

[jpvdw]

When a clown (45) moves into a palace he doesn't become a king... the palace turns into a circus.

[malanalan]

Corporate profits, Corporate profits, Corporate profits. What about people's profits?

[electricman]

Tax cuts for the rich lowering interest rates for those in debt to get deeper in debt and a tariff tax on the poor THIS IS HOW COPORATISIM WORKS

[douglowry]

If energy prices stay low, why are energy companies drilling more to bring in more supply. Most people know a little about supply and demand and companies like higher prices not lower ones. Consumers like low prices, however with dropping demand why are companies drilling?

[ethantidwell]

My industry is going to be hit in a very negative way because of these isolationist idiots i may have to move my business and jobs elsewhere

[MFM]

Whoa! Who knows what will happen to the economy in the future when foreign countries reflect on high government deficits and high inflation. Eventually, they will wise up and demand a risk premium for holding government bonds. Interest rates go up, deficits spiral out of control, and depression. As for petroleum, have you never heard of externalities?

[keithgilbert]

More BA from the team with concepts of plans. We all know the only tax cuts go to the billionaires

[jascam]

This is a plus for Mexico, once their economy starts to boom thanks to China this will create more Middle Class Mexicans and a reluctance to migrate to the US, as a result there will be less migrant workers for the US agriculture fields. A big win for Mexico and China. Thanks to Trump tariffs.

[labendecida]

The richer becomes richer and the poor even more poor . I don’t believe this will help our country .