Trump tariff architect Navarro leads trade war on ‘China harming American workers’
Trump tariff architect Navarro leads trade war on ‘China harming American workers’
Trump administration tariff architect Peter Navarro focuses on ‘China harming American workers’, and White House press secretary Kush Desai called him a “valuable asset” and said, “Peter Navarro was decades ahead of the mainstream ‘experts’ on how China’s unfair trade policies are undermining American workers.”
The New York Times, which tracked the first 100 days of the Trump administration, closely covered the entire process of Navarro, who was the chairman of the National Trade Commission in the first term, actively participating in the ‘election invalidation’ in 2017, being imprisoned for four months for contempt of Congress, and then being released right before the last presidential election to become the leader of the Trump camp’s trade war at a Trump campaign site.
The economics professor at the University of California, Irvine, began to attack China for active protectionism after China joined the World Trade Organization (WTO). In Trump’s first 100 days in office, Navarro has already played a critical role in pushing through six major trade policies that have pushed tariffs to levels not seen in a century as part of an attempt to curb America’s dependence on imports and bring factories back to the United States.
Two people familiar with the Trump administration’s deliberations told the Times that Navarro may have been the originator of a controversial formula the White House uses to calculate tariff rates based on the U.S. trade deficit.
As the 75-year-old trade skeptic takes over as president in a second term, he has become more confident in his rebellious vision for the U.S. economy, more dismissive of his critics, and more than a dozen trade-related executive orders have already been drafted, many of which have been signed by the president, the Times reported on the 20th.
Edward Alden, a senior fellow at the Council on Foreign Relations, which studies trade, said Navarro “may be the worst trade adviser of any modern American president.”
He told the Times that while much of Navarro’s analysis of how China and other countries have adopted unfair trade policies is valid, he has also reinforced the president’s worst tendencies, particularly the chaotic tariff policies that have harmed the U.S. and global economies, and he has helped transform the U.S. from a world economic leader to a rogue state.” Navarro has specifically derided mainstream economists who oppose Trump’s “tariff” agenda as “the same damn fools who supported NAFTA and China’s entry into the World Trade Organization and all the other trade deals that were supposed to benefit the U.S. but ended up benefiting Wall Street and the foreigners who are screwing us over,” the Times said. In the first 100 days of Trump, the Trump administration’s actions and tariffs on China, led by Navarro, have been carried out in a flurry since the possibility of a recession this year was raised on March 9.
On April 7, he threatened to impose massive tariffs on China in response to Chinese retaliation, on April 8, he said China was making a “big mistake” in retaliating against Trump’s tariffs, on April 11, he announced a rule exempting many electronic components and devices from the president’s tariffs on China, and on April 14, he said he was “concerned” that China had halted exports of critical minerals to the United States.
Richard Grenell, a former Trump administration official and interim director of the Kennedy Center, is a vocal supporter of Navarro. “The United States needs to take steps to expand its manufacturing base, and Chairman Navarro is completely focused on that mission,” he told the Times. “If we don’t squeeze other countries, we’re not going to make anything. We’re just going to be a consumer country. And that’s going to be the end of us.”
He added, “Half the country, maybe more than half the country, is conservative or Republican,” and “they love what Peter Navarro stands for.” Navarro, who earned his Ph.D. in economics from Harvard, published his first book in 1984, a chapter in defense of free trade, and taught business and economics, first in San Diego and then at the University of California, Irvine, where he became a tenured professor for more than 20 years.
He lectured at night, wrote books by day ("Big Picture Investing" and "If It's Raining in Brazil, Buy Starbucks"), appeared as a TV commentator, and was interested in politics, running for office several times as a Democrat as an environmental activist and social libertarian.
He spoke at the Democratic National Convention on August 28, 1996, and ran as a Democrat for mayor of San Diego, California, with an environmentalist campaign focused on blocking big developers.
Navarro's 2001 entry into the World Trade Organization (WTO) brought about changes to both the Democratic Party and his career.
Navarro said that in the early 2000s, students at UC Irvine began losing jobs unexpectedly, and he began to focus on China's impact on trade. Professor Nivarro assigned his students to study how the Chinese were able to set their prices lower than other countries, and the key finding of his research was that “it is not just cheap labor that drives up prices, but a series of predatory trade practices, including export subsidies, currency manipulation, and lack of protections for workers and the environment.”
The idea of the Chinese trade scandal has been reflected in three books on Chinese trade, one of which, “Death by China,” co-written with Greg Autry in 2011 and narrated by Martin Sheen, was made into a documentary.
In the documentary, Navarro interrogates corporate lobbyists behind the camera and praises unions for the harm that offshoring is doing to American workers.
The film was criticized as “over-the-top” by the press at the time, but President Trump praised it as “just right,” according to the New York Times.
Navarro’s documentary “Death by China” expanded Trump’s fan base. Trump’s former national security adviser and longtime friend, Robert C. O’Brien, praised Navarro for “always caring about workers, even though he was a professor at a Southern California college.”
“He had a gut feeling that the people in the Rust Belt were getting a really crazy deal,” said Ian O’Brien, who was his national security adviser during the first term. “Navarro essentially understood that China was eating our lunch.”
Trump kept calling him, “Where’s my Peter?”
Navarro said in a 2011 Los Angeles Times blog post that Trump had spit out 20 of his favorite books about China during an interview with Chinese media outlets, one of which was “The Coming War in China.”
The Times said it was doubtful that Trump had ever actually given the interview Navarro claimed. Richard McGregor, author of another book on the list, told the Times that he “believes the content of Navarro’s blog post is fake,” and that he “cannot find the original Chinese-language article.”
Despite the controversy over the fake, Navarro’s article still served as a catalyst for Navarro to exchange messages with Trump.
Navarro was an adviser to Trump’s 2016 presidential campaign, and his protectionist rhetoric resonated deeply with Trump’s base.
After Trump was elected in 2017, Navarro was promised the prestigious position of director of the National Economic Council (NEC), he wrote in his 2022 book, “Trump’s America Takes Back.”
But the job was given to Gary Cohn, the former Goldman Sachs chairman, and “Cohn,” in Navarro’s parlance, was a “globalist” who would become his arch-enemy.
Navarro was appointed chairman of the newly created National Trade Council, but was given few resources.
During the first term, Cohn and other members of the administration viewed Navarro’s proposals, from withdrawing from NAFTA to imposing strict tariffs, as harmful, and they tried to “overthrow” Navarro through a series of bureaucratic blockings and humiliations, Navarro and other officials testified.
During the first Trump term, Navarro suffered the humiliation of having to report to Cohn and copy on his emails.
During the first Trump term, there was a strategy to prevent Navarro from storming the Oval Office alone, and . Navarro was not invited to the “weekly trade conference” to make an unscheduled presentation, and had to sneak charts to him.
Despite such “blockings and discrimination” during the first term, Trump, a hardened trade skeptic, would occasionally ask Navarro specifically, asking, “Where’s my Peter?” Navarro told the Times that Trump loved to say, “Where’s my Peter?”
Cohn left the White House shortly after Navarro and Commerce Secretary Wilbur Ross successfully got the president to impose tariffs on steel and aluminum in Trump’s second term.
Navarro became an advisor in charge of trade and manufacturing, and disparaged Trump's closest aide Elon Musk as 'an assembly plant, not a manufacturing company', Musk criticized him as a 'brick', and Trump declared 'neutrality' in the confrontation between the two.
Navarro later clashed with others, and his backer O’Brien had a “pretty monumental fight” with Treasury Secretary Steven Mnuchin in the Situation Room and the Oval Office over whether to negotiate a U.S.-China trade war.
One project Navarro pursued and succeeded in was securing a new Navy contract for a Philadelphia shipyard that was on the verge of bankruptcy, and Trump expanded on this by announcing a “resurrection of warships.”
He visited Switzerland to reform international postal treaties that had benefited Chinese exporters at the expense of American taxpayers, and was instrumental in getting companies like General Motors, Honeywell and Abbott to produce masks, ventilators and COVID-19 tests as supply chains collapsed and U.S. hospitals ran out of supplies during the pandemic.
Corning CEO Wendell Weeks told the Times that Secretary Navarro worked with him to procure vials as part of the government’s vaccine distribution efforts.
Weeks called the project “one of the most amazing things I’ve ever seen in government,” adding that he and Navarro “have had ongoing conversations about Corning’s efforts to manufacture solar panels, fiber optics and pharmaceuticals in the United States.”
The disruption caused by the pandemic has validated Navarro’s “China warnings” about the dangers of relying on foreign supply chains, especially those that run through China, the Times reported.
As the U.S. sank into the pandemic, Navarro’s “China conspiracy” grew, and he and former top medical adviser Anthony Fauci argued over the use of hydroxychloroquine as a coronavirus treatment, which Trump promoted and Navarro continued to strongly support, leading to Fauci’s firing.
Navarro repeated false claims that Trump won the 2020 election and, after serving four months in a Miami prison for ignoring a congressional subpoena related to the January 6, 2017, Capitol riot, was released from prison and immediately went on the campaign trail to campaign for the president until Election Day.
“There were few actions that could have demonstrated Navarro’s loyalty to Trump more than being in prison,” the Times reported. “At a rally in Greenville, North Carolina, last October, Trump personally praised Navarro, who was sitting in the audience.”
In his speech, Trump addressed Navarro by name, saying, “You and I are speaking out for what we believe in,” and “You did a great job today. You did a great job forever.”
In January, Navarro said, “President Trump has proven that tariffs work for the American people,” adding, “It won’t be painful for America. It will be beautiful.” Trump then imposed tariffs of at least 10 percent on nearly all products imported into the United States.
The Trump administration has imposed national security-related tariffs on steel, aluminum, and automobiles, launched investigations that could lead to tariffs on copper, lumber, semiconductors, and pharmaceuticals, and the U.S. has introduced higher global tariffs on nearly 60 countries, which Trump has suspended for 90 days to negotiate.
Navarro’s argument is that “tariffs don’t raise prices,” and that “tariffs increase productivity and force foreign suppliers to lower their prices to maintain access to the U.S. market.”
He continues to argue that other Trump policies, such as deregulation, tax cuts, and energy conservation, will also boost the economy and keep inflation low.
But Navarro continues to push a maximalist approach.
He has said that the U.S. will not make everything it needs, but he opposes tariff exemptions for goods not made in the United States. “He knows he has a short political window to push through massive tariffs,” people close to Navarro told the Times, adding that “he sees tariff exemptions as a slippery slope for special interests to set tariffs.”
Navarro’s argument was thwarted in early April when Trump, persuaded by the turmoil in the bond market, suspended many of his global tariffs.
Trump then moved to exempt electronics from the Chinese tariffs and has talked about other tariff exemptions for industries such as autos.
Amid the chaos, rumors have spread that Navarro is “on thin ice,” but even some of his critics are skeptical that he will actually be ousted.
Navarro denied reports of a slump on “Meet the Press” on April 13, saying the administration’s policies remain “no exemptions, no exclusions” and “everything is going according to plan.”
In an email response to the New York Times story, Navarro referred to “the mainstream media’s portrayal of chaos” and said it “ignores the strategy of negotiating with more than 90 countries that have admitted to trade misconduct,” adding that “this is Trump’s 3D chess and nervous Nellys should trust Trump.”
A number of economists say that tariffs are already chilling corporate investment and consumer spending, and are backfiring on American factories by driving up the cost of raw materials and inputs.
Regarding Navarro’s “helping workers” argument, David Autor, an economics professor at the Massachusetts Institute of Technology, told the Times that “the burden of tariffs will actually fall most heavily on the poor,” and that “it’s hard to say a lot of very positive things about this policy.”
Autor said only that “it could help the U.S. compete with China,” adding that “we’re punching our friends in the nose, tying their feet with tariffs, and looking back at what we wish had not happened, as opposed to what we’re facing now.”