Trump tariff threat: 'Tariffs are effective tool in achieving economic objectives', stresses White House
The statement by the White House said that the tariffs implemented by Trump during his first term “clearly show[ed] no correlation with inflation” and had only a fleeting effect on overall prices | World
With less than a couple of hours left for US President Donald Trump to make new ‘country-specific’ tariff announcements, the White House has come out with a statement backing trumps move. The statement says "tariffs are an effective tool for achieving economic and strategic objectives — just as they did in President Trump’s first term."
The release highlighting a 2024 study said President Trump’s tariffs in his first term “strengthened the U.S. economy” and “led to significant reshoring” in industries like manufacturing and steel production.
It also said that the tariffs implemented by Trump during his first term “clearly show[ed] no correlation with inflation” and had only a fleeting effect on overall prices.
Will create new incentives
The statement further spoke about how an analysis by the Atlantic Council found that “tariffs would create new incentives for US consumers to buy US-made products.”
“I don’t believe that American consumers will see any meaningful increase in the prices that they face," former Biden Secretary of the Treasury Janet Yellen was quoted as saying.
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Will help create jobs
According to the White House, an economic analysis done in the year 2024 found that a global tariff of 10% would grow the economy by $728 billion. This would also help in creating 2.8 million jobs, and increasing real household incomes by 5.7%.
"A 2023 report by the U.S. International Trade Commission — which analyzed the effects of President Trump’s Section 232 and 301 tariffs on more than $300 billion of U.S. imports — found the tariffs reduced imports from China, effectively stimulated more U.S. production of the affected goods, and had very minor effects on downstream prices," the statement read
According to the Economic Policy Institute, the tariffs implemented by President Trump during his first term “clearly show[ed] no correlation with inflation” and had only a fleeting effect on overall prices.
