Trump’s Trade Triumph

by Newt Gingrich

The news media’s analysts can’t seem to grasp the scale of President Donald J. Trump’s triumph in reshaping trade and the American economy.

They have a simple minded fascination with tariffs. However, tariffs are only one tool President Trump is using to maximize American growth and competitiveness.

President Trump recognizes that he is leading the largest economy in the world. Therefore, in any bilateral negotiation – even with systems as big as China, the European Union, and Japan – he has an enormous advantage that can be dramatically expanded.

The principle of the Trump economic revolution in trade is simple. Trading partners need America more than America needs them. America can hurt them economically far more than they can hurt America. Within this context, he negotiates.

As the man who wrote “The Art of the Deal” and “the Art of the Comeback,” President Trump knows how to negotiate. In fact, he loves to negotiate, and he never feels any pressure while negotiating.

Further, given how many tough negotiations in which President Trump has participated throughout his career, other leaders are at an enormous disadvantage.

In the simplest terms, there are essentially four tools in the Trump trade toolbox.

First, there are tariffs. The media focuses on using tariffs to raise revenues. However, President Trump is also using them to give American industries a chance to succeed and as leverage for other trade related goals.

Second, he’s boosting American product sales.

Third, he has locked in commitments from other countries to massively invest in the American economy. This will create jobs and fuel a revolution in productivity and proficiency. This combination will lead America to pull away from the rest of the world in sheer capacity and capability.

Fourth, there are the enormous tax and regulatory changes in the One Big Beautiful Bill Act. One hundred percent expensing for factories – meaning investors will be able to write off a factory in one year – is an huge step. Before July 4, the depreciation for factories was 39 years under the General Depreciation System. That was a 2.56 percent depreciation per year. Compare the desirability of building new factories when suddenly you can write off the cost in one year instead of 39.

This four-point plan for American economic growth is going to lead to a boom by the summer of 2026. After four years of disastrous Biden-flation, this is exactly why Americans elected President Trump – and the Republican House and Senate. As I wrote last week, the choice in the 2026 election will be between the Trump Boom and the Democrat Gloom.

Whether the media gets it or not, we are in the midst of Trump’s trade triumph.

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