The Trump administration's sweeping tariff strategy proposes 25% tariffs on Mexico and Canada imports, with 10% on Chinese goods and 10% on Canadian energy. President Trump has since delayed Mexican tariffs until March 1, as the US and Mexico continue negotiations on migration policies.
Joseph LaVorgna, SMBC Nikko Securities America managing director and former chief economist at the National Economic Council under President Trump, joins Market Domination to provide insights into these tariff measures.
"Tariffs can be used really three-fold," LaVorgna explains, describing the various uses as "interconnected." He explains that tariffs can be used as a revenue source, a means of enhancing national security, and a tool for driving reindustrialization and onshoring of businesses.
"I would not separate these things," he adds, noting that negotiations with Mexico and Canada will "inevitably" influence upcoming discussions with China and the European Union.
While acknowledging that the southern border presents "the bigger problem," LaVorgna emphasizes the importance of comprehensive border considerations. He notes that examining Mexico alone and ignoring the northern border seems "half done," arguing that "you want to look at everything because we do share a border."
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Regarding potential impacts across US industries, LaVorgna echoes President Trump's sentiment: "There will be some pain, but the whole point is to reindustrialize."
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This post was written by Angel Smith