Trump says tariffs are generating billions for U.S. economy ahead of midterms
President Donald Trump told Fox & Friends that recent and upcoming tariffs are bringing hundreds of billions of dollars to the United States, as new duties on 60 trading partners take effect.
President Donald Trump defended the administration’s tariff policy on Tuesday, telling the morning program Fox & Friends that the measures are generating "hundreds of billions of dollars" for the United States. He made the comments as the government prepares to impose new 10% and 12.5% tariffs on imports from 60 trading partners after a temporary global tariff expires on Friday.
When host Brian Kilmeade asked whether the tariffs could hurt the economy, Trump replied, "> No, because it's bringing hundreds of billions of dollars. I was at General Motors yesterday. They have the best year, the most trucks and cars. The tariffs have saved General Motors. What I've done to the auto business, what I've done to the chip business. We have chip companies now building hundreds of billions of dollars worth of chip plants in Arizona."
He added that the United States could see 40% to 50% of its chip production come from domestic sources within 18 months. Trump also referenced a recent Supreme Court decision that struck down earlier reciprocal tariffs, noting that the administration is using a temporary 10% global tariff under Section 122 of the Trade Act of 1974, which will expire at 12:01 a.m. ET on Friday.
The Office of the U.S. Trade Representative announced that the new tariffs, imposed under Section 301 of the Trade Act of 1974, will take effect immediately after the temporary duties lapse. Canada, Mexico, India and the United Kingdom will face a 10% tariff, while Taiwan and the European Union will be subject to a 12.5% rate.
Trump also claimed that higher tariffs have encouraged foreign automakers to invest in U.S. production, citing Toyota’s announced $12 billion plant program as an example. He said the administration will not seek to extend the U.S.-Mexico-Canada Agreement, preferring to negotiate separate deals with Canada and Mexico.
The new tariff regime comes as the nation heads toward the November midterm elections, with the president emphasizing the economic benefits of the policy.