LARRY KUDLOW: Tax cuts, deregulation and tariff diplomacy go hand in hand

Whatever President Donald Trump finally decides on this trade policy, a key fact is that his tax cut and deregulation policies go hand in hand with the tariff diplomacy.

We know the world trading system has been broken for decades. And we know that the U.S. has been a victim of unfair trading practices, basically getting the short end of the stick.

It's time to fight back.

We know that President Trump is trying to promote re-shoring and stop offshoring. We also know he wants to build up the American manufacturing system, which itself has probably been the biggest victim of worldwide unfair trading practices aimed at the U.S.

So, think of this: an investor or CEO considering building a U.S. factory would, under Trump tax policies, get the ability to immediately write off 100% of the cost of the factory. Not only that, it would be retroactive, to January 20, 2025.

Or, perhaps, the foreign car company already domiciled in the U.S. might wish to upgrade its factory with the purchase of new machinery and equipment. Well, they too may get 100% bonus depreciation to write off the investment in Year 1, also retroactive.

Pretty spiffy, don't you think? Advantage, U.S.

Plus, 'Made in America' companies that move from offshore to onshore, well, they will get a 15% corporate tax rate, among the lowest in the world. Another advantage.

And, then, think about President Trump's huge reduction in regulatory compliance costs. For every one new regulation, he's saying he would end ten others.

He's already issued 107 executive orders in 67 days, more than any other President in history, and many of these orders have deregulated the economy.

Environmental policies, power plants, fossil fuels, banking, SEC, construction, and on and on.

In so many high-tariff countries around the world, their governments are authoritarian, if not downright statist. This is especially the case in China and Asia. But how about the European Union?

Well, come to America, and the Trump Administration is giving you more business freedom to act, removing economic and cultural regulations that have hobbled businesses for so long.

Pretty good deal, wouldn't you say? Lower taxes, and far fewer regulations.

Under the fullness of Mr. Trump's economic plan, the U.S. will become a very big growth machine. According to the President, he's already attracted roughly $4 trillion of new foreign investments. And that's just in a couple of months.

You might say – free-market capitalism.

Oh, and by the way, if you build in America, you don't even have to worry about tariffs.