Trump: Tariffs May Hurt, but ‘Will All Be Worth It’ in the Long Run

On Saturday, President Donald Trump slammed some serious tariffs on Canada, Mexico, and China. Then, the Trump administration sent out a memo for immediate release on Sunday, with more details on the administration’s acts and intents:

• TARIFFS STRENGTHEN THE AMERICAN ECONOMY, RAISE WAGES, AND CREATE JOBS: 
  • According to a 2024 analysis of tariffs done by McKinsey & Company, “tariffs on imported goods could reduce competition for US producers, increase demand for US-made goods, and create jobs.”
  • A 2024 study on the effects of President Trump’s tariffs in his first administration found that they “strengthened the U.S. economy,” and “led to significant reshoring” in industries like manufacturing and steel production.
  • President Trump’s global tariffs on steel created over 4,000 new American jobs.
  • An analysis from the Atlantic Council found that “tariffs would create new incentives for US consumers to buy US-made products.”
  • Former Biden Treasury Secretary Janet Yellen affirmed last year that tariffs do not raise prices: “I don’t believe that American consumers will see any meaningful increase in the prices that they face.”
  • President Trump’s tariffs on steel and China “reduced imports of affected steel products by 24 percent…and increased U.S. production of steel products by 1.9 percent.”
  • A bipartisan group of Senators wrote Joe Biden in September 2024 asking him to reimpose steel tariffs on Mexico.

Pres. Trump is also admitting that the move won’t be without some possible pain for American consumers, in a new post on Sunday on his Truth Social account:

President Trump acknowledged that the across-the-board tariffs he ordered into effect Saturday on imports from Canada, Mexico and China might cause “some pain,” but argued that they will pay off in the long term.

The 47th president also once again brought up the idea of annexing Canada, saying the country “should become our Cherished 51st State” to reap the benefits of lower taxes, a strong military and no tariffs — an offer the northern neighbor has repeatedly spurned.

“This will be the golden age of America! Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid,” Trump, 78, wrote on Truth Social Sunday in all capitalization.

“We are a country that is now being run with common sense — and the results will be spectacular!!!”

If you can’t read the post, it read:

The “Tariff Lobby,” headed by the Globalist, and always wrong, Wall Street Journal, is working hard to justify Countries like Canada, Mexico, China, and too many others to name, continue the decades long RIPOFF OF AMERICA, both with regard to TRADE, CRIME, AND POISONOUS DRUGS that are allowed to so freely flow into AMERICA. THOSE DAYS ARE OVER! The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the “Stupid Country” any longer. MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS! Why should the United States lose TRILLIONS OF DOLLARS IN SUBSIDIZING OTHER COUNTRIES, and why should these other countries pay a small fraction of the cost of what USA citizens pay for Drugs and Pharmaceuticals, as an example? THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID. WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!

Previously on RedState: 

NEW: Trump Follows Through on Holding Canada, Mexico, and China Accountable, Signs EO

Trump to Impose Hefty Tariffs on Canadian, Mexican Imports—As Soon As the Weekend

Tariffs can have the effect of raising consumer prices, but in the longer term, they can also have the effect of incentivizing foreign businesses to move to the United States, and to have American companies return production here as well. Historically the tactic has been something of a mixed bag; the Smoot-Hawley tariffs have been blamed for aggravating the Great Depression, although in this, as in many things, if you ask three different economists about that effect, you’ll get 19 different answers.

Buying American is the goal, and placing a price floor on imported products can have that effect. Shoring up our manufacturing base, though, should be an even larger goal, as the United States isn’t the industrial power it was in, say, 1945. And that seems to be a goal of the Trump administration as well. The WH’s statement continued with some items on manufacturing in the U.S.:

• BRINGING MANUFACTURING BACK TO AMERICA: 
  • Hyundai’s CEO stated on January 14^th that investing in the US is the best antidote to potential tariffs and touted the company’s newly built $13 billion plant in Georgia.
  • Hyundai Steel is actively considering building a US plant as tariffs loom.
  • Fortune Magazine recently wrote: “Trump’s tariff threats are working: Audi ponders a U.S. manufacturing site—and Porsche might join”
  • Auto suppliers Bosch and Continental have begun developing plans to manufacture in the US in order to avoid tariffs. 

President Trump has, in his Truth Social post, again brought up the possible annexation of Canada; it’s unclear what he’s trying to achieve with this proposal. It’s might be an “Art of the Deal” tactic to get Justin Trudeau to cave on some trade concessions, although, we should note, that Canada will be having a general election later in 2025, and Trudeau’s Liberals are expected to take a beating in the manner of American Democrats in 2024, only maybe rather more so. By the end of the year, Pres. Trump may well be negotiating with Prime Minister Pierre Poilievre, who he is likely to find more congenial.

The primary purpose, according to the president, of the tariffs is still to get Canada and Mexico to do what they can to stem the flow of illegal immigrants and illegal drugs across both American borders. It remains to be seen what Canada and Mexico will do to that end. 

Read related: Greg Abbott Demolishes Justin Trudeau After He Steps in It Even Worse on Tariffs

This post was originally published on this site