Trump’s advisor Navarro discusses tariff developments

Investing.com -- Peter Navarro, trade advisor to former President Trump, has recently made statements regarding the United States’ trading relationships with Europe, Canada, and Mexico, as well as the country’s overall economic strategy.

Navarro expressed concerns about Europe’s Value-Added Tax (VAT), stating that it is negatively impacting American car exports. He did not specify the extent of the impact or provide further details.

In addition, Navarro revealed that Canada and Mexico have agreed to engage in discussions about tackling the issue of Fentanyl, a synthetic opioid, which is linked to approximately 75,000 deaths in the US annually. No specific actions or strategies were outlined during his announcement.

Navarro also mentioned the International Emergency Economic Powers Act (IEEPA), indicating it would be used to address the drug war. However, he did not exclude the possibility of the Act being used for other purposes.

In a significant revelation, Navarro stated that if the Trump administration’s trade actions are successful, there would be a structural shift in the American economy. The shift would move the economy away from an over-reliance on income taxes and towards revenues generated from tariffs.

He further explained that countries would not have to pay tariffs if they invest in the US, hinting at a potential incentive for foreign investment.

Navarro also announced that a call between Trump and China was scheduled for the same day. He did not provide further information on the expected topics of discussion.

In regards to the US Trade Representative (USTR) nominee Greer, Navarro stated that they would ’recalibrate’ Section 301 tariffs on Chinese imports. He did not elaborate on what this recalibration would entail.

Lastly, Navarro mentioned a trade study examining the potential damages from the $1 trillion global US trade deficit. He suggested that if the study shows significant damages, there could be a possibility of a supplemental global tariff. No further details about the study or potential tariff were provided.

These statements from Navarro indicate a potential shift in US trade and economic policy, with a focus on tariffs and foreign investment. However, the specifics of these changes and their potential impacts remain unclear.

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