Republican presidential candidate Donald Trump defended his steep tariff plans, countering economists who assert those costs would burden consumers. In a Bloomberg-hosted interview by the Economic Club of Chicago, Trump argued tariffs would boost American manufacturing without spiking inflation or damaging alliances.
Trump stated, “The higher the tariff, the more likely it is that the company will come into the United States, and build a factory in the United States so it doesn’t have to pay the tariff.”
When questioned about the interim impact on consumer prices, Trump suggested imposing tariffs “so high, so horrible, so obnoxious that they’ll come right away.” He hinted at tariffs reaching 100% or 200% on foreign products.
Micklethwait challenged Trump on the potential economic risks, referencing the Smoot-Hawley Tariff Act, which some link to the Great Depression. Trump dismissed these concerns but didn’t explain how his plan would avoid a trade war.
Desmond Lachman from the American Enterprise Institute cautioned that tariffs of 60% on Chinese goods and 10-20% on other imports could spark retaliatory actions, disrupting international trade and risking a recession.
Trump also suggested the president should influence Federal Reserve interest rate decisions, though he avoided confirming if he would retain Jerome Powell as chairman.
Additionally, Trump declined to comment on communications with Russian leader Vladimir Putin, despite reports of such interactions.
Trump predicted the presidential race would focus on Pennsylvania, Michigan, and potentially Arizona. The Economic Club of Chicago has invited Democratic nominee Kamala Harris for an interview.
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