Former Reagan economic advisor Art Laffer appeared on Fox Business’ Varney & Co. Tuesday with a full-throated endorsement of President Donald Trump’s new round of tariffs, describing them not as a protectionist maneuver, but as a calculated opening move in a broader strategy to drive down global trade barriers and reshape international economic relationships.
Laffer, a key architect of Reagan-era supply-side economics, appeared on the program following the release of a Wall Street Journal op-ed he co-authored with economist Stephen Moore, titled “A Win-Win Exit Strategy for Trump on Tariffs.”
According to Laffer, the real strength of Trump’s tariffs lies in their strategic application. The idea is not to entrench protectionism, but to force other nations to the table and pressure them to reduce their own higher tariffs, quotas, and non-tariff barriers.
“Trump is just phenomenal at negotiating,” Laffer told Stuart Varney. “He’s gotten them in a position where they’re going to lose access to the U.S. market if they don’t redress these inequities.”
He added that by threatening tariffs now, Trump has already begun receiving overtures from countries eager to strike deals. Treasury Secretary Scott Bessent confirmed to Fox News this week that up to 70 countries have expressed interest in negotiating trade pacts in response to the tariffs.
Countries including Israel, Japan, Vietnam, Argentina, and Indonesia are reportedly among those initiating talks.
Laffer explained the proposed “win-win” exit strategy: once foreign governments agree to reduce or eliminate tariffs on American exports, the U.S. would then lower or remove its tariffs in response.
The end goal, he emphasized, is not more tariffs—but freer, more equitable trade.
“Trump should be able to negotiate getting rid of tariffs for them and for us. If they come down, we’ll come down further. That’s the win-win.”
The administration’s new tariff structure includes a baseline 10% levy on a wide range of imports, with higher rates targeting countries with significant trade surpluses. These measures began phasing in last week, with reciprocal tariffs scheduled to go fully into effect Thursday.
Despite his support, Laffer issued a clear warning: if the tariffs become permanent or escalate without resulting in trade agreements, the consequences could be severe.
“If we have a huge escalation of tariffs, it would be disastrous for both America and the world economy,” he said.
However, he stressed that in a worst-case scenario, the U.S. would still be in a stronger position than its trade adversaries. “Everybody loses in trade wars, but we don’t all lose the same. Americans will lose less than the foreigners do, so they have an incentive to negotiate.”
Trump’s trade team argues that the “Liberation Day” tariffs are necessary to counter decades of non-reciprocal trade arrangements that have hollowed out U.S. manufacturing and tilted the playing field toward global competitors.
A White House fact sheet released April 2 said the tariffs would remain “until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.”
Laffer believes the tariffs, if handled as leverage rather than policy end goals, could restore fairness and competitiveness in global trade while simultaneously sparking U.S. economic growth through job creation and capital reinvestment.
“The world will prosper. We’ll have a great economy, and the U.S. will be in perfect, beautiful shape for economic growth,” he concluded.
