Some of President Donald Trump’s allies are saying that recent moves by Israel and Vietnam to lower import duties are a sign that Trump’s aggressive tariff agenda could end up helping trade.
In a dramatic Rose Garden announcement declaring “Liberation Day,” Trump on Wednesday announced 10% tariffs on all imports and higher reciprocal rates on other countries. In the days before the tariff rollout, Israel announced the removal of tariffs on U.S. products and Vietnam cut tariffs on several U.S. imports.
“That’s kind of the goal of this thing, that’s a positive result,” Sen. Ron Johnson (R-WI) told the Washington Examiner when asked about the moves by Israel and Vietnam.
Additionally, Vietnam gave Elon Musk’s Starlink access to the country recently and has promised to purchase more U.S. imports. India has also reportedly expressed a willingness to lower tariffs on electric vehicles.
A major question before Wall Street and investors is how much Trump has been playing hardball with tariffs in order to exact concessions like lower levies from other countries.
Critics would say the market fallout from tariffs and threats of tariffs isn’t worth it, but supporters of Trump’s aggressive trade agenda would argue that countries preemptively lowering tariffs in response to the mere threat is proof that the strategy works.
Trump, though, has cited different and sometimes conflicting goals for the tariffs. At times, he’s suggested they will bring back manufacturing to the United States. At other times, he’s said they will bring in massive tariff revenues — which would not happen if producers instead moved to the U.S.
Trade negotiation partners have said that it is not clear that meeting Trump’s demands will eliminate the threat of tariffs. Mexico, for instance, worked to fulfill Trump’s conditions for avoiding tariffs that he said were meant to pressure the country into cracking down on illegal immigration and drug trafficking. The tariffs were imposed nevertheless, albeit with some concessions.
Famed investor Bill Ackman, founder and CEO of Pershing Square Capital Management, who endorsed Trump during this past election cycle used Israel’s announcement to push other countries to make similar moves on trade.
“Israel sets the example on how all of our allies should preemptively respond to President [Trump]’s desire to level the tariff playing field for America,” Ackman said on X.
Sen. Rick Scott (R-FL) told the Washington Examiner ahead of Trump’s Liberation Day announcement that he thinks the president’s trade agenda is an issue of fairness. Trump has also said he wants to use the higher tariffs as a way to boost U.S. manufacturing.
“I think that’s what Trump is doing, he said, ‘Look, it’s unfair these protection policies all across the world, and they want to come in and sell in our market, the biggest market in the world, and then they don’t want us to sell in theirs,’” Scott said. “That’s wrong, so I think it’s great what’s happening and I look forward to seeing what the president comes out with this afternoon.”
“But what I do know is we’re going to get more American jobs,” Scott added.
Sen. John Kennedy (R-LA) said that he expects what happened with Vietnam and Israel will end up happening with more countries as a result of the pressure.
Kennedy told the Washington Examiner that he has asked Canadian Prime Minister Mark Carney to consider dropping Canadian tariffs to zero and then challenge the U.S. to drop its tariffs on Canada to zero.
“I think the president would do it,” Kennedy said. “That, to me, is fair trade and just to let Canadian businesses and American businesses compete, competition makes all of us better, and may the best product at the best price win.”
Veteran Republican consultant Jason Roe told the Washington Examiner that many of the free trade agreements pushed by the U.S. weren’t truly free. He said the U.S. “[hasn’t] always gotten a one-to-one deal.” Roe said he expects that there will be volatility with some countries over the more aggressive tariff agenda and some might push back.
“But I think it is a good sign that some of these countries are lowering some of the trade barriers so that we do have a freer trade arrangement,” he said.
TAX RECKONING COMING FOR BESIEGED UNIVERSITIES AT HANDS OF GOP
Kennedy said he thinks that, given the changes under Trump, he expects more fairness in international trade.
“I think you’re going to see more countries decide to move toward fairer trade,” Kennedy said.
