The United States economy is set to see some “disturbance” from tariffs, President Donald Trump said Tuesday, but he touted levies as a tool that would help domestic industries boom.
“Tariffs are not just about protecting American jobs. They’re about protecting the soul of our country,” Trump said in his first address to a joint session of Congress since returning to the White House.
There’ll be a little disturbance, but we’re okay with that. It won’t be much,” he added.
He warned that those who do not make their products in the United States will have to pay levies, “in some cases a rather large one.”
Trump also took aim at the European Union and countries including Canada, Brazil, India, Mexico and South Korea over what he called “unfair” practices.
“This is happening by friend and foe. This system is not fair to the United States, and never was,” he said.
He added that reciprocal tariffs tailored to US trading partners would “kick in” on April 2 to remedy the situation.
Trump promised “trillions of dollars” in gains from levies, alongside job creation, stressing that rescuing the economy was among his “very highest priorities.”
Cost-of-living pressures were a key issue in the November election that saw Trump return to power, and the Republican has promised to swiftly reduce prices.
To combat lingering inflation, Trump has vowed to lower energy costs and cut federal spending.
He said he seeks “permanent income tax cuts all across the board.”
Trump has moved swiftly to impose tariffs hitting some $1.4 trillion in US imports from Canada, Mexico and China — with further levies in the pipeline.
The moves sent shockwaves through financial markets, drawing swift retaliation including announcements of counter-tariffs and other measures.
While economists have warned that sweeping tariff hikes will dent US GDP growth and cause a near-term increase in inflation, Trump’s promises of tax cuts and deregulation are among plans that could boost growth down the road.
On Tuesday, Trump took aim as well at the CHIPS Act, with a nearly $53 billion program involving subsidies to stimulate the US chipmaking sector.
He called for an end to the program.
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