Billionaire hedge fund founder John Paulson dismissed former President Donald Trump’s threats to impose universal tariffs on imported goods and said he believes Trump would instead institute targeted tariffs on certain industries—as Paulson is being floated for a potential Trump treasury secretary.
John Paulson visits "Mornings With Maria" at Fox Business Network Studios on October 23, 2024 in New ... [+]
Paulson told Semafor in an interview published Friday “it makes sense to have the bulk of the tariffs targeted to industries that are subject to unfair trade competition” and “that are strategic, both for industry and defense.”
When asked whether he believes Trump would “veer in a more targeted direction” instead of imposing the universal tariffs he’s suggested, Paulson said “yes.”
Paulson acknowledged Trump’s proposals would “result in higher import prices,” but said Trump’s tariff proposal “supports domestic manufacturing, so you get more jobs, more investment in the U.S., more taxes.”
Paulson has repeatedly praised Trump’s tariff plans, predicting in a September Wall Street Journal op-ed they would “generate some $450 billion in revenue,” while blasting existing trade policies as “one-sided” because the U.S. imposes lower tariffs than other countries.
Paulson also told Semafor he’s “willing to serve in any capacity that [he] could be helpful” in Trump’s administration when asked if he would serve as treasury secretary, as Trump has reportedly raised his name in discussions with confidants about potential cabinet picks.
We estimate Paulson is worth $3.8 billion.
“It is time for us to retaliate against the unfair trade practices we’ve been receiving and act in a reciprocal fashion,” Paulson told Semafor when asked if he’s concerned about retaliatory tariffs under Trump, noting that “when Tesla wanted to sell cars to China, it wasn’t allowed” and was instead “forced to build a factory in China to sell cars in China.”
Paulson, a major fundraiser for Trump, has threatened to pull his money from the stock market if Harris is elected, he told Fox Business in September, citing Harris’ proposal to tamp down on price gouging, raise the corporate tax rate and potentially raise taxes on unrealized capital gains, a proposal President Joe Biden supports but one that Harris has not made clear whether she’d implement.
Trump hasn’t formally committed to a specific tariff policy, but he’s proposed raising tariffs by 10% on all imported goods and by 60% on goods imported from China. Most experts say the cost of tariffs would be absorbed by some combination of U.S. businesses that import goods, consumers and foreign exporters. Generally, economists believe Trump’s tariff plan would hurt the U.S. economy by decreasing consumer spending, increasing unemployment rates and lowering economic growth.
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