Trump 2.0 marks 'quantum leap' on trade from first term, Navarro says

By Andrea Shalal

WASHINGTON (Reuters) - Members of U.S. President Donald Trump's trade team are unified in their goal of shifting the U.S. government from relying too much on income taxes and focusing more on revenues from tariffs and other external sources, a top trade official said on Tuesday. 

White House trade adviser Peter Navarro told a Politico event the Republican president's second term marked a "quantum leap" from his first, with Trump and his advisers now "at the top of the learning curve."

Trump's trade actions, including imposing tariffs on China, met with skepticism during his first term, but the president had far more people installed in government and hit the ground running this time, he added.

Trump has shaken up U.S. trade policy, threatening and then removing tariffs against Colombia over an immigration issue during his first week in office. This past weekend, he imposed sweeping tariffs on China, Mexico and Canada, citing fentanyl and immigration concerns, only to delay their implementation for Canada and Mexico a few days later.

"This is the latest example when he does stuff and it looks like things are a little chaotic. It's not. It's genius, and he delivers," Navarro said.

He said Trump's trade team was gearing up to implement the trade agenda signed by the president on his first day.

BESSENT KEY PLAYER

Treasury Secretary Scott Bessent, a Wall Street veteran sworn in on Jan. 28, is a newcomer to the White House, but will be a key player on trade issues, Navarro said. He said Bessent would lead investigations on foreign acquisitions as the head of the Committee on Foreign Investment in the United States, or CFIUS, and also oversee currency issues, Navarro said.

Jamieson Greer, who served as chief of staff to former U.S. Trade Representative Robert Lighthizer and faces a Senate confirmation hearing on Thursday, will focus on recalibrating the U.S.-Mexico-Canada trade agreement and reviewing the U.S.-China trade deal, he said.

"This is going to be done in a measured way," he said.

Howard Lutnick, another newcomer who is awaiting Senate confirmation as Trump's nominee to head Commerce, joined the president in Florida over the weekend and will focus on trade issues, such as Section 232 tariffs on steel, aluminum, essential medicines and critical minerals, Navarro said.

Kevin Hassett, director of the White House National Economic Council, will work on shifting the U.S. economy to rely less on income taxes and more on external revenues such as tariffs, Navarro said.

He said Secretary of State Marco Rubio was instrumental in preparing for the Mexico tariffs and in negotiations that led to the postponed implementation, aided by deputy chief of staff Stephen Miller.    

(Reporting by Andrea Shalal and David Lawder; Editing by Rod Nickel)