President Donald Trump says tariffs are key to U.S. economic dominance.
“Tariffs are having a tremendously positive impact,” Trump said during a business roundtable on Tuesday, March 11. He also hinted that they’re likely to go “higher.”
Trump highlighted that companies are now building plants in U.S. states like Michigan, Indiana, and South Carolina instead of Mexico. He emphasized that the ultimate goal is not just generating revenue, but creating U.S. jobs, adding that they serve as a tool to prevent job losses.
The U.S. has been “ripped off” by other countries for decades, Trump said, and tariffs are a way to correct that imbalance. The livestream of the broadcast abruptly ended when Trump was asked about lowering the cost of living for Americans, which appeared to be due to technical difficulties.
In a recent interview with Fox News, Trump did not rule out the possibility of a recession, describing the current U.S. economy as entering a “period of transition” due to the implementation of his policies. White House press secretary Karoline Leavitt has framed it similarly.
Trump’s remarks have put markets on edge. On Monday, the Dow Jones Industrial Average, S&P 500, and Nasdaq all saw major declines compared to their positions a month ago. The Nasdaq recorded its worst day since 2020, while the Dow dropped 890 points, and the S&P 500 tumbled as well.
Wall Street’s steep sell-off followed new tariffs from China and Canada, as investors grew concerned that Trump’s trade policies could push the U.S. into a recession. The administration has also signaled that additional tariffs will take effect on April 2. Thus far, the administration has imposed 25% tariffs on imports from Mexico and most goods from Canada, as well as 20% duties on Chinese imports.
These trade restrictions have created a “hot-and-cold” effect, causing concerns among companies, retailers, and suppliers about the long-term impact on economic growth. To make matters worse, February’s jobs report revealed unemployment rates had increased.
Investors are particularly worried about potential retaliatory actions from other nations, which could deepen the economic slowdown. The president’s push for reciprocal tariffs, aimed at ensuring “fairness” in trade, has further unsettled markets. With the threat of higher tariffs looming, businesses and investors are closely watching how the Trump administration’s next move will shape the country’s position in ongoing trade disputes.
Last week, Trump granted a one-month exemption to the Big Three U.S. automakers: Ford, General Motors and Stellantis. Meanwhile, retailers like Walmart, Target, and Best Buy, have warned prices are likely to increase for consumers.