On a day that saw the U.S. stock market plummet, President Trump stood resolutely behind his tariff strategy, claiming it would rejuvenate American manufacturing. The Dow experienced a significant drop, falling 478 points as concerns over tariffs brewed, yet Trump remained optimistic about the future.
Addressing a gathering of approximately 100 CEOs from major U.S. corporations, the President proclaimed a “new, business-friendly climate” in America. “Hundreds of billions of dollars is being invested,” he asserted, underlining his belief that these investments are a direct result of his election victory. The President expressed confidence that the tariffs are already creating a positive ripple effect. “They will have. And they are having,” he emphasized.
Starting Wednesday, U.S. companies will face a 25% tariff on steel and aluminum imports from both Canada and the European Union. White House Press Secretary Karoline Leavitt endorsed the move, stating that it has been well-received by American manufacturers. She remarked, “Our steel and aluminum industries have actually applauded these tariffs because again, they know it’s going to grow their industry here.”
However, the international response has been less than welcoming. In reaction to the tariffs, the EU has suggested possible countermeasures set to begin on April 1, although they have indicated a willingness to negotiate. Meanwhile, Ontario’s Premier Doug Ford proposed a 25% surcharge on electricity exports to the U.S. However, Trump warned that such actions could push the Canadian tariff to 50%, leading Ford to reevaluate and temporarily suspend the surcharge.
The back-and-forth exchanges highlight an ongoing tension, with Trump commenting, “Threats going back and forth, tit for tat.” He expressed hope for resolution in upcoming discussions during his visit to Washington.
Yet, amidst the optimistic rhetoric, some economists raised red flags about the tariffs’ impact, stating they typically engender the kind of uncertainty that investors dread. “Businesses really don’t know what the policy is, where it’s going, what’s being tariffed, what’s not being tariffed, and it’s frustrating,” Steven L. Skancke, Ph.D., noted. He explained that such uncertainty often leads businesses to retreat from market involvement.
Despite the downward trend in the stock market, Trump assured reporters outside the White House that a rebound is on the horizon. “Some people are going to make great deals by buying stocks and bonds,” he predicted, countering concerns about a possible recession. “I don’t see it at all. I think this country’s gonna boom.”
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