In an interview with CNBC, former President Donald Trump reaffirmed his support for tariffs, stating, “I’m a big believer in tariffs.”
He hinted at the possibility of reinstating duties on foreign goods if he were to be reelected for a second term, citing both economic advantages and diplomatic leverage associated with targeting imports.
“I fully believe in them economically when you’re being taken advantage of by other countries,” Trump emphasized during the “Squawk Box” interview. “Beyond the economics, it gives you power in dealing with other countries.”
Trump’s remarks come amid a closely contested race with President Joe Biden, with Trump poised to secure the Republican nomination given his recent victories in the primaries and the withdrawal of his opponents. The economy is anticipated to be a pivotal issue in the upcoming election.
During his tenure from 2017 to 2021, Trump implemented various tariffs on countries like China, Mexico, and the European Union. Notably, he imposed 25% tariffs on imported steel and aluminum, aiming to protect domestic industries.
Discussing China’s impact on the steel industry, Trump stated, “China was taking advantage of us on the steel. They were destroying our entire steel industry.” He highlighted the emotional response from individuals in the steel sector, expressing gratitude for his actions.
Trump singled out the Chinese automobile industry for future attention, expressing concerns about China’s dominance in the sector.
He indicated intentions to impose tariffs to encourage Chinese automakers to establish manufacturing facilities in the United States, asserting, “We want to get cars made by China in the United States using our workers.”
Despite criticism that tariffs could lead to increased prices for imported goods, Trump defended their effectiveness. He argued that tariffs would incentivize companies to relocate manufacturing operations to the United States, thereby creating job opportunities for American workers.
Critics argue that tariffs could be counterproductive, potentially contributing to inflation by raising the cost of imported goods.
However, during Trump’s presidency, inflation remained relatively subdued, with the consumer price index rising by less than 8% over four years, compared to approximately 18% under Biden’s administration.
