On Tuesday’s broadcast of CNBC’s “Money Movers,” White House Senior Counselor for Trade and Manufacturing Peter Navarro responded to a question on how tariff revenue will lower the deficit and replace personal income taxes if the goal of some of them is reciprocity by stating that Apple is investing in the U.S. and the loss in tariff revenue will be made up by economic activity in the U.S.

Co-host Carl Quintanilla asked, “Peter, the other thing that might require some clarification is you talk about some of these tariffs coming off once fairness is achieved. At the same time, we’re hearing the tariff revenue is going to help us lower the deficit and replace personal income tax.”

Navarro answered, “Yeah, but think about it, Carl, over the longer term — look at what just happened, right? Apple, after years of sending all its products to Xinjiang and resisting all manner of effort to do anything here, $500 billion it’s going to invest here, right here in America. And so, any tariff revenues we might lose from iPhones being shipped in here and having tariffs on them, we’ll gain from the prosperity of the jobs and the economic activity. So, again, it’s — this is a different way of thinking.”

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