White House trade adviser Peter Navarro said Saturday that he is confident that another stimulus package is likely for the end of the summer and that President Donald Trump is on board for a deal.
Navarro, speaking to CNN, said he believes a package aimed at bolstering manufacturing and costing around $2 trillion is one Trump would be most likely to favor.
"We are facing significant structural headwinds because certain service-oriented industries like entertainment, hospitality and transportation have especially been hurt because of COVID-19,” Navarro said. "The only way to fully rebuild the economy in the face of those headwinds is to significantly expand and strengthen our manufacturing base."
"Put simply, we need to create more manufacturing jobs. Manufacturing jobs not only provide good wages but also create more jobs both up- and downstream through multiplier effects,” Navarro said.
House Democrats passed legislation in May that included $1,200 checks for virtually every adult and child in the country, nearly $1 trillion for state, local and tribal governments and $200 billion for hazard pay for essential workers. The price tag for that legislation was expected to be more than $3 trillion.
Navarro said the Trump was likely to support a bill more along the lines of $2 trillion, which is a trillion dollars more than what Mitch McConnell wants and a trillion less than what Nancy Pelosi said is needed.
The Wall Street Journal is reporting that Trump is planning to meet with his senior advisers as soon as this week to discuss another stimulus package, according to a senior administration official.
“We’ve been through the rescue phase and we’re now in the transitional reopening phase and I think generally speaking we’d like to move into a growth-incentive phase for the future economy,” the senior administration official said.
Trump, his advisers and many Republicans in Congress have been taking a wait-and-see approach to the next round of stimulus relief.
The administration is also discussing a tourism tax deduction or tax credit for families or individuals who take a vacation somewhere in the U.S. in the next three to six months, the Journal reported.
Treasury Secretary Steven Mnuchin said on Capitol Hill last week that Trump is “seriously considering” more stimulus in the form of a possible second stimulus check or funding for businesses in certain sectors.
A payroll tax cut, return-to-work bonus, and financial incentives to bring manufacturing jobs from abroad are believed to be some of the programs Trump supports and is considering.
Cox Media Group