In an exclusive interview with the Washington Examiner, Peter Navarro predicted the tariffs, so far implemented on goods like steel and aluminum, will drive new investment in the United States and restore American manufacturing.

Trump pursued a similar strategy in his first term, using the levies as a tool of first resort, but his administration has signaled it will act even more aggressively following his return to the White House.

“This is about a fundamental ‘back to the future’ structural realignment of an American economy which is going to regain its manufacturing roots as well as restore tariffs as a primary source of government revenues, as they were from the ages of Hamilton and Jefferson to McKinley,” Navarro said.

“This is the biggest change in the global economy since NAFTA and China entering the WTO, which basically tore apart America,” he added. “What we’re doing is putting Humpty Dumpty back together again, and this time it can be done.”

TRUMP ANNOUNCES RECIPROCAL TARIFFS THAT WILL BE DETERMINED ON A ‘COUNTRY-BY-COUNTRY’ BASIS

Driving investments in manufacturing

Economists remain wary of Trump’s tariff agenda, predicting businesses will pass the costs to American consumers. Mark Zandy, Moody’s chief economist, estimated that Trump’s tariffs “will reduce the real purchasing power of the typical American family by between $200 and $250 a year.”

Still, Navarro argued that Trump’s policies will drive new investment in U.S. manufacturing in order to circumvent the tariffs altogether.

“We had $15 billion of investment after the 2018 tariffs from domestic producers alone. You’ll see them, domestic and foreign producers, set up here on American soil and expand,” Navarro predicted. 

Since entering office, Trump has imposed blanket 25% tariffs on all steel and aluminum imports, in addition to taking steps toward new, reciprocal tariffs on all U.S. trade partners aimed at offsetting trade imbalances.

The president has also placed 10% flat tariffs on Chinese imports and hinted that he plans to announce separate levies for imported automobiles, pharmaceuticals, semiconductors, and lumber as soon as next month.

“The beauty of the no exemptions policy is it forces them to come here or pay the tariffs. We like that too,” Navarro said.

TRUMP SLAPS 25% TARIFFS ON STEEL AND ALUMINUM IMPORTS

Supply vs. demand

Economists say that American production of steel and aluminum falls short of levels necessary to offset price increases for consumers, a point the White House has tacitly acknowledged.

“We won’t be able to meet demand tomorrow,” one senior White House aide assessed Tuesday.

Still, Navarro told the Washington Examiner that once American companies, especially in the auto industry, shore up domestic supply chains, Trump’s tariffs will prove to be a “great boon for them.”

“The auto industry, America’s auto industry, domestic industry will love auto tariffs,” he insisted. “What Ford, Stellantis, GM have to figure out quickly is how to get supply chains on shore ramped up and producing domestic cars. It’ll be a great boon for them, and the steel and aluminum tariffs will work in concert with that.”

Although Trump announced his plan to pursue reciprocal tariffs earlier this month, he declined to outline an implementation schedule for when, and to what degree, new tariffs will be placed on U.S. trading partners.

‘Not about China’

White House officials previously told the Washington Examiner that Trump’s trade team, which includes Navarro, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and other members of the Cabinet, will conduct a review and make recommendations to the president for each nation with which the U.S. sees a trade deficit.

Navarro declined to offer specific insight into that process but reiterated that the president’s team is focused on resetting all U.S. trade relationships, not just the imbalance with Asia.

The U.S. had trade deficits with nine of its top 10 partners last year, accounting for a rough imbalance of $1 trillion. That list included goods deficits of $295.4 billion for China, $171.8 billion for Mexico, and $123.5 billion for Vietnam.

In his first term, Trump granted exemptions on steel tariffs to nations like Canada and Australia, with his new executive order removing those carveouts.

“This is not about China,” Navarro said. “This is about unfair trade practices around the world.”

White House officials stress that the president’s reciprocal tariffs, at least for now, will likely cover all of a country’s exports to the U.S. as opposed to individual, specific goods.

But Navarro conceded that Trump himself will make that determination and could change his mind.

“The president is always right. He’s taken some questions and said he’ll listen. That’s what I love about the boss. He never says ‘never,’” he said.

TRUMP MIGHT USE TARIFFS TO FORCE ARAB COUNTRIES TO ADMIT PALESTINIAN REFUGEES

Trump has signaled a willingness to grant tariff exemptions in exchange for non-trade-related concessions. Last month, he threatened 25% tariffs on all imported Canadian and Mexican goods but eventually paused their implementation after those countries’ leaders made commitments to address border security and drug smuggling.

“But here’s what’s important about steel and aluminum: This is clearly a case of let’s not get fooled or taken advantage of again,” Navarro added. “Every country, strategic competitor and ally alike, that was given an exemption from the 2018 aluminum and steel tariffs abused that privilege and flooded our markets.”