President Donald Trump acknowledged potential economic “disturbance” from tariffs on Tuesday but defended them as a tool to strengthen domestic industries.
“Tariffs aren’t just about American jobs; they protect the very soul of our country,” Trump said in his first address to a joint session of Congress since returning to the White House.
While he admitted there could be minor disruptions, he assured the nation, “There’ll be a little disturbance, but we’re okay with that. It won’t be much.”
Trump warned that companies producing goods outside the United States would face tariffs, some of them significant. He also criticized trade policies involving the European Union, Canada, Brazil, India, Mexico, and South Korea, labeling them “unfair.”
“This is happening with both friends and foes. The system has never been fair to the United States,” he said, announcing that reciprocal tariffs tailored to U.S. trading partners would take effect on April 2.
Emphasizing economic revival as a top priority, Trump projected “trillions of dollars” in benefits from tariffs, alongside job creation. He also vowed to address inflation by cutting energy costs and federal spending while pushing for permanent income tax reductions.
His remarks sent ripples through financial markets, with some countries swiftly announcing counter-tariffs and other retaliatory measures. Economists have warned that broad tariff increases could slow U.S. GDP growth and temporarily push inflation higher. However, Trump’s agenda of tax cuts and deregulation is seen as a potential driver of long-term economic expansion.
In his speech, Trump also targeted the CHIPS Act, a $53 billion initiative designed to bolster the U.S. semiconductor industry. He called for its termination, signaling a shift in approach to industrial policy.
