President Donald Trump’s trade and tariff practices received the backing of Palantir Technologies Inc.’s (NASDAQ:PLTR) co-founder, Joe Lonsdale, who argues that the U.S. has tolerated unfair global trade practices for decades and needs to push back.
Calls Out ‘Unfair’ Trade Practices
Lonsdale says America, being a dominant nation following World War 2, allowed nations and companies across the globe to get away with various “unfair” trade practices. He said this while appearing on CNBC’s ‘Squawk Box’ on Thursday.
“If I want to go and do business in Japan, if I want to go and do business in certain European countries, there’s things that block me for certain industries. And because of that, it’s been very unfair,” he says.
According to Lonsdale, this leniency made sense as countries rebuilt their economies after the war, but "at this point, it’s unfair for them to be screwing over America.” He says, "He’s [Trump] right to use something to try to renegotiate that and to get rid of their trade barriers.”
Specifically pointing at India’s trade barriers, he said, “India has very, very unfair rules against US trade.” He described Trump's use of tariffs as a negotiation tool, saying it was “the right way to negotiate.” While noting that the approach “hasn't worked so far,” Lonsdale suggested the president “maybe has something” in trying to reset the trade relationship.
The entrepreneur turned venture capitalist framed tariffs as a necessary bargaining chip. “And we can try and set the example for the rest of the world in terms of free and fair trade,” he said. “You can only get screwed for so long, right?”
Trump’s Tariffs: A ‘Value-Added Tax’
Several other prominent experts have recently espoused similar views, with investor Kevin O’Leary saying that tariffs are essentially “a value-added tax.”
“He calls this a tariff. The Europeans and the Canadians call theirs VAT. Who cares what it’s called? It’s a tax.” he says. O’Leary also says that Trump can be “very pragmatic” at times, referring to his trade and tariff policies, negotiations with other nations in recent months.
General Motors Inc. (NYSE:GM) CEO Mary Barra has similarly expressed support for Trump's tariff policies, framing them as a protective measure for U.S. automakers. She said the tariffs are meant “to level the playing field” against what she described as unfair global competition.
Palantir shares were up 0.80% on Thursday, closing at $156.14, and are up 0.92% pre-market. The stock scores high on Momentum and Growth in Benzinga’s Edge Stock Rankings, with a favorable price trend in the Medium and long terms. Click here for deeper insights into the stock.
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