Fox Business host Larry Kudlow patiently explained trade deficits to Treasury Secretary Scott Bessent during an interview Monday, an eyebrow-raising incident that occurred as the Trump administration continues to falter on its tariff messaging.
“I don’t know if you heard [Arthur] Laffer in the prior interview, but Art doesn’t believe that the trade deficit should be a metric. I don’t really either,” Kudlow began, referring to the Trump administration’s reliance on trade deficits to calculate the sweeping “reciprocal tariffs” it imposed on global trade partners last week.
“Mr. Secretary, if you get the tax cuts—and I guess you’re well on the way—you get your deregulation, these are all huge pro-growth items,” Kudlow continued. “The United States will grow faster than Japan. We will grow faster than almost anybody. Therefore, almost by definition, by growing faster than the rest of the world, we’re always going to have a trade deficit.
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