LARRY KUDLOW: Tariff diplomacy means crank up the Trump tax cuts
Published On Feb 3, 2025, 7:05 PM
Larry Kudlow discusses the potential benefits of President Trump's tariff diplomacy strategy and suggests that it could pave the way for the extension of Trump's tax cuts. He highlights recent successes in negotiating tariff pauses with Mexico and Canada, and he argues that tariffs on imports can generate revenue that could be used for further tax cuts. Kudlow advocates for a significant tax cut bill to stimulate the economy and support American families and businesses, referencing the potential for up to $500 billion in revenues from proposed tariffs.
Stock Forecasts
SPY
Positive
Given the ongoing discussions of tariff diplomacy and potential extensions of tax cuts under Trump's administration, investors should consider sectors likely to benefit from increased consumer spending and corporate tax benefits. The conversation surrounding tariffs might lead to volatility in global trade stocks, but overall, companies benefitting directly from tax cuts and a stronger dollar may see positive momentum.
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