Prominent economist Arthur Laffer on Wednesday praised President Trump's strategy on tariffs, calling Trump a “master gamesman” in negotiations on economics.
Laffer praised Trump’s impact on markets and trade as well, saying that Trump’s approach on the subject shows his unmatched skill in economic negotiation.
“You've seen Donald Trump negotiating as no person ever has before. He's just trying to get reciprocal tariff reduction on [other countries’] part. And he brought them to the table. And they're coming to the table rapidly,” Laffer told Newsmax.
Trump’s pause in escalating the tariffs brought much needed market relief, and the reaction is a clear signal of investor sentiment, Laffer argued.
The Dow Jones Industrial Average increased approximately 3,000 points, likely due to lowering concerns over trade tensions escalating.
“THIS IS A GREAT TIME TO BUY!!! DJT,” Trump wrote on Truth Social Wednesday morning, before announcing the pause.
“You can just see how wonderful the market thinks of a pause," Laffer said. "No one wants higher tariffs. No one does. The market especially hates it. With this reprieve in sight, I mean, it was a great day in the market. You know, Trump really is a master gamesman."
Trump’s tariffs are not meant to generate revenue long term, but are a broader strategy to get better trade deals, Laffer stated, saying “I don't know if they're just a manipulation to try to get fair deals. But it clearly is a very great negotiating tool for the president to use, and he's been using it very effectively.”
Trump has used tariffs and economic pressure in international dealings as well, according to Laffer.
“He used it [them] in Panama to have the Chinese removed from both ends of the canal. He used it [them] in Canada and in Mexico, with regard to the cartels. He really knows how to use the tools at hand to negotiate great stuff,” Laffer said.
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