SUKUMAR SAH
When US President Donald Trump’s administration announced sweeping reciprocal tariffs — imposing duties ranging from 10 per cent to 125 per cent on imports from a host of trading partners — one name stood prominently behind the policy’s formulation: Peter Navarro. As Senior Counselor for Trade and Manufacturing, Navarro played a central role in crafting and promoting this aggressive trade intervention, in keeping with his long-held views on protectionism and economic nationalism.
Navarro’s influence on Trump’s trade policy was neither new nor incidental. A Harvard-trained economist, Navarro had long been a vocal critic of global trade practices, particularly targeting China. His 2011 book, Death by China, painted a stark and often alarmist picture of the dangers posed by China’s economic policies to the US economy. While the book won him admirers among economic nationalists, many mainstream economists dismissed it as overly simplistic and ideologically driven and lacking in empirical rigour and nuance.
Nevertheless, Navarro’s alignment with Trump’s ‘America First’ economic agenda makes him a crucial figure in the administration’s inner circle. His philosophy centres on reducing trade deficits, countering what he calls unfair foreign trade practices, and using tariffs as a tool to assert American economic interests. This worldview formed the intellectual backbone of the reciprocal tariff policy unveiled in 2025.
Navarro was not just involved in the policy’s drafting but also took an active role in defending it publicly. In a February 2025 interview, he underscored tariffs’ importance not only as a corrective tool against unfair trade but also as a significant source of government revenue. “They’re going to be a very important source of revenue for this country,” he remarked, “but what we won’t tolerate is cheating.”
“Overly simplistic” world view of one man driving US trade policy
The implementation of these tariffs, however, triggered immediate and severe market volatility. US stock indices tumbled, global trade partners reacted with retaliatory threats, and diplomatic tensions rose. Just 13 hours after the tariffs took effect, President Trump — under pressure from both international markets and internal dissent — announced a 90-day pause on the measures. The abrupt reversal laid bare the deep divisions within the administration’s economic team. Treasury Secretary Scott Bessent and other moderates had cautioned against aggressive tariffs, warning of their potential to disrupt global supply chains and inflate domestic prices. Navarro, however, remained resolute in advocating for a hardline stance. Navarro’s role in shaping Trump’s trade policy has always been contentious. While supporters praised his willingness to challenge multilateral trade systems and confront countries like China over intellectual property theft and forced technology transfers, critics, especially among free-market economists, argue that his views are rooted in economic misconceptions.
They contend that trade deficits are not inherently damaging and that protectionist policies often result in higher costs for consumers and retaliatory measures against US exports. In the end, while the reciprocal tariffs policy faced delays and internal contestation, Peter Navarro’s imprint on Trump’s trade agenda remains undeniable. His advocacy for aggressive, nationalist trade measures helped define a key feature of Trump’s presidency and continues to shape US trade discourse. B
