Trump’s tariff plan might surprise everyone

A leading economist, Torsten Sløk from Apollo Global Management, who once warned about the dangers of tariffs, now suggests President Donald Trump’s tariff strategy could be cleverer than expected. In a recent note, Sløk outlined a scenario where extending the tariff deadline by a year could benefit everyone. This move would give businesses and other countries time to adjust to higher tariffs, reducing confusion and boosting planning, jobs, and financial markets.

Sløk believes this approach could generate $400 billion in yearly revenue for U.S. taxpayers while keeping tariffs at a modest 10%, which trading partners might accept. He called it a potential “win for the world” that could stabilize markets and increase U.S. funds. This view marks a shift from his earlier concerns about tariffs harming the economy.

While some experts still worry about tariffs causing higher prices or trade disputes, Sløk’s idea suggests Trump’s plan might avoid major damage. His comments have sparked discussions, as many wonder if this strategy could balance economic growth with new government income. For now, the outcome remains uncertain, but Sløk’s analysis offers a fresh perspective on a controversial policy.