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President Trump looks to bring manufacturing back to US with tariffs

FOX Business’ Lauren Simonetti reports on how one American business owner is capitalizing on President Donald Trump’s tariff plan.

President Donald Trump is looking to boost American manufacturing and its competitiveness with tariffs.

Last week, the nation’s 47th president moved to reinstate a 25% tariff on steel imports and lift the tariff on aluminum imports to 25%, using Section 232 of the Trade Expansion Act of 1962.

The White House has argued those tariffs will help with “revitalizing the domestic steel and aluminum industries” and bring back manufacturing.

WHO GETS HIT HARDEST BY STEEL AND ALUMINUM TARIFFS?

President Donald Trump signs executive orders, imposing 25% tariffs on imported steel and aluminum, the latest salvo in his ongoing effort to overhaul the U.S. trading relationship with the rest of the world. (Jabin Botsford/Washington Post via Getty Images)

More recently, the Trump administration also unveiled a plan to develop reciprocal tariffs.

“It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us,” Trump said in a TruthSocial post about the plan. “There are no Tariffs if you manufacture or build your product in the United States.”

He also said it was time countries “treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”

FOX Business’ Lauren Simonetti recently spoke to Mark Andol, the founder of Made in America Store, a business that stocks its shelves solely with products made in the U.S. and that seeks to increase American manufacturing.

“I don’t have [anything] that plugs in or takes a battery out of 15,000 products, and I said we’ve been to the moon but we can’t make a toaster. We’ve got to want. You’ve got to make ‘Made in America’ important again,” he said.

Meanwhile, Flying Bison Brewing Company founder Tim Herzog told Simonetti tariffs could negatively impact costs.

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“Where we are, the light delicate malt that’s the popular malt for beers right now is from Canada. Some is grown in northern New York state, sent to Canada to be malted, comes back over the border, so it’s going to get tariffs going over and it’s going to get tariffs coming back,” he said. “The price is going to go crazy.”

The number of manufacturing employees in the U.S. stood at a preliminary 12.76 million as of January, according to the Bureau of Labor Statistics. That is millions fewer than the numbers seen in the ‘80s and ’90s.

There were nearly 403,000 private manufacturing establishments in the U.S. at the end of 2024’s second quarter, according to preliminary data from the BLS.

TRUMP’S TREASURY SECRETARY SHUTS DOWN ANY TARIFF CONCERNS, PRAISES ‘FRICTIONLESS GLOBAL TRADE’

Trump has been busy pursuing other tariffs since taking office as well.

Donald Trump (Bill Pugliano/Getty Images)

He inked executive orders for 25% tariffs on imports from Canada and Mexico and a 10% tariff on imports from China this month. However, his administration paused the levies focused on America’s northern and southern neighbors for one month after Canada and Mexico both agreed to take steps to heighten enforcement on their borders with the U.S.

Those were implemented in response to the “extraordinary threat posed by illegal aliens and drugs” that the Trump administration said were coming across the borders, according to a White House press release.

February 18, 2025
Trump tariffs spark ‘exciting time’ for Ohio steel plant as CEO eyes adding jobs, boosting productivity

FIRST ON FOX: President Donald Trump’s tariffs will be a boon for an Ohio-based steel mill and its employees, the CEO of JSW Steel USA, a subsidiary of a massive India-based steel manufacturer, told Fox News Digital in an exclusive interview.

“It’s a good piece of the formula that results in our company increasing utilization in the next 12 months, from 68% to probably 84%, and beyond that in years to come. So it’s a very exciting time for us,” JSW Steel USA CEO Robert Simon told Fox News Digital of Trump’s tariff plan in a phone interview on Thursday evening.

Simon has served as the CEO of JSW Steel USA since March of last year, bringing with him more than 30 years of experience in the steel industry. He spoke to Fox News Digital following Trump announcing his administration’s “fair and reciprocal plan on trade,” which he celebrated during a press conference as a project that will flood the U.S. with jobs as trading partners move their industries to U.S. soil to avoid tariffs.

JSW USA is a subsidiary of Mumbai-headquartered JSW Group, which owns India’s second-largest private steel company, JSW Steel. JSW USA has two steel locations in the U.S., one at Mingo Junction, Ohio, and another operation in Baytown, Texas.

TRUMP DETAILS HIS RECIPROCAL TARIFF PLANS, ASKS FOREIGN COUNTRIES TO ‘TREAT US FAIRLY’: ‘DELIVER RECIPROCITY’

JSW Steel USA CEO Robert Simon spoke with Fox Digital in an exclusive interview. (JSW Steel USA )

Simon told Fox News Digital that across his more than 30 years in the industry, U.S. steel manufacturers have complied with strict environmental and safety practices, and paid their employees fairly, while foreign steel manufacturers could skirt U.S. regulations while exporting their goods to the U.S.

“We, as steel producers, we paid our employees fair wages, treated them fairly, met some of the most – if not the most strict – environmental requirements in the world, and those practices in our markets, with the simple supply-demand equation establishes market pricing.”

The JSW Steel USA facility in Mingo Junction, Ohio. (JSW Steel USA )

“The frustration is, how is it fair that others that don’t treat their employees the same way, don’t follow the same rules, don’t follow environmental practices… they get government subsidies. How is it fair that they can come into our markets and take market share when it’s not an equal playing field?” he said.

Simon said the Ohio plant alone will likely see a minimum increase of 100 jobs in the next year under Trump’s tariff plan.

“As you look at that increase in utilization coupled with the overall increase in production that we foresee in the next three to five years, we estimate, at a minimum, a 100 jobs increase in the next 12 plus months associated with that utilization rate increase,” he said.

WHO GETS HIT HARDEST BY STEEL AND ALUMINUM TARIFFS?

Trump’s administration issued a fact sheet last week restoring a 25% tariff on steel, which detailed “domestic steel and aluminum industries and achieving sustainable capacity utilization of at least 80%.” JSW Steel USA told Fox News Digital that they are already on track to increase their utilization rate from 68% to 84% – higher than Trump’s target number of 80%.

Under the first Trump administration, JSW Steel USA notably sued the federal government in 2019 over tariffs regarding imported steel-slab materials. The company now makes all domestic steel-slab materials as part of the JSW Group’s belief that its facilities both make products and supply the product in the communities they serve.

President Donald Trump speaks at a rally at Circa Resort & Casino on Jan. 25, 2025, in Las Vegas. (Ian Maule/Getty Images)

Simon celebrated in his comments to Fox Digital that Ohio families that had long worked in the steel industry are making a return to the factory as the industry reinvigorates under the first and second Trump administrations. JSW USA purchased the Ohio factory in 2018, after it had operated as a Wheeling-Pittsburgh Steel plant, but sat dormant for years.

TRUMP ADVISOR TEASES NEW ‘GOLDEN AGE’ OF U.S. STEEL AND ALUMINUM

“This is a company that had been shut down for over seven years, when we acquired it. We hired a workforce, trained a workforce, all from the local area. What’s really cool to see is we’ve got employees whose grandparents and great-grandparents worked in this same company, which ended up being shut down, and they’re part now of reviving that company and bringing it to an offering of products that’s extremely competitive and extremely impressive in terms of its value added products,” Simon said.

Trump announced a reciprocal tariff plan on Thursday, tapping Howard Lutnick, his nominee for commerce secretary, to produce a report on reciprocal trade relations within 180 days. Lutnik said Thursday that he will have the report ready for Trump by April 1.

Howard Lutnick, commerce secretary nominee, joins President Donald Trump in the Oval Office of the White House on Monday, Feb. 10, 2025. (Al Drago/Bloomberg via Getty Images)

WHAT ARE TARIFFS, HOW DO THEY WORK AND WHO PAYS FOR THEM?

”On trade, I have decided for purposes of fairness, that I will charge a reciprocal tariff – meaning whatever countries charge the United States of America, we will charge them no more, no less. In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple,” he said at the White House on Thursday.

Trump touted that the plan will lead to a job boon in the U.S. as foreign trading partners move operations stateside to avoid the reciprocal tariffs.

“They can build a factory here, a plant or whatever it may be, here,” Trump said Thursday afternoon from the Oval Office. “And that includes the medical, that includes cars, that includes chips and semiconductors. That includes everything. If you build here, you have no tariffs whatsoever. And I think that’s what’s going to happen. I think our country is going to be flooded with jobs.”

Simon told Fox News Digital that Trump’s business and deal-making abilities are “obvious to everybody” as he whips through dozens of executive actions and orders in just a few weeks back in the Oval Office, remarking that it’s “pretty amazing.”

“It’s become obvious to everybody that Mr. Trump is not a politician, right, but, more of a business person stepping in and leading our country, from much more of a business perspective than as a career politician. Like it or not, for those folks that have different opinions, this results in very quick negotiations. I don’t think I’ve ever in my time here seen so much movement, so much decision-making, so many decisions being made in this shorter period of time since he’s been in office. It’s pretty, pretty amazing,” he said.

JSW USA purchased the Ohio factory in 2018, after it had sat dormant for years. (JSW Steel USA )

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Trump also met with Indian Prime Minister Narendra Modi on Thursday, and the two discussed trade, the economic relationship between India and the United States and military sales. The pair also “committed to drive opportunities for U.S. and Indian companies to make greenfield investments in high-value industries in each other’s countries,” including naming JSW’s operations at Texas and Ohio as a prime ongoing investment in the U.S., according to a joint statement from the two nations.

President Donald Trump and India’s Prime Minister Narendra Modi shake hands during a news conference at the White House, Thursday, Feb. 13, 2025. (AP Photo/Alex Brandon)

“The steel tariffs enacted by President Trump are a necessary step in leveling the playing field for American steelworkers and manufacturers. Foreign competitors fail to protect their workforce at the same safety standards, do not compensate them fairly, and produce steel that contributes to environmental degradation, all the while, seeking to flood the U.S. market, taking advantage of our strong economy, driving a collapse of our markets in the process,” Simon added in comment provided to Fox Digital.

February 16, 2025
Nissan could ditch some Mexico production lines due to Trump tariffs, CEO says

MonetaryMacro.com CIO Joseph Wang argues President Donald Trump’s tariffs on Canada and Mexico are more than just a negotiating tactic on ‘Making Money.’

Nissan CEO Makoto Uchida suggested President Trump’s tariffs could force the car manufacturer to shift its production outside of Mexico.

“From Mexico to the U.S., we are exporting a significant number of cars this fiscal year[…] 320,000 units are exported from Mexico to the U.S., and if the high tariffs are imposed, we need to be ready for this, and maybe we can transfer the production of these models elsewhere if this were the decision, we will think how we can make it a reality while monitoring the situation,” Uchida said, according to a translation on Reuters.

The move could be a major blow to Mexico’s auto production sector, as nearly 670,000 vehicles were made by Nissan in the country last year, with over 456,000 of those being exported, according to the Spanish-language UnoTV.

The outlet said Nissan ranks second in Mexico for those metrics after General Motors.

WHITE HOUSE ECONOMIST SAYS RECIPROCAL TARIFF NEGOTIATIONS WITH OTHER COUNTRIES UNDERWAY

White House counselor for trade and manufacturing Peter Navarro detailed the “most potent weapons” Trump has against inflation, on “Mornings with Maria.” (Chip Somodevilla / Getty Images)

“We are exporting a large volume to U.S., so if there’s a high tariff, this would have huge implications on our business, so we need to monitor this carefully.”

Trump’s 25% tariffs on Mexico are currently on hold until at least March following a conversation with Mexican President Claudia Sheinbaum. Trump has argued that the primary goal of tariffs on the United States’ southern neighbor is to promote border security.

Nissan CEO Makoto Uchida speaks during a Bloomberg Television interview at the company’s global headquarters in Yokohama, Japan, on Nov. 29, 2021. (Kiyoshi Ota/Bloomberg via / Getty Images)

“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Trump said in a Truth Social post after the conversation with Sheinbaum, as critics argued that Mexico has sent in border troops multiple times in previous years.

WHAT’S HAPPENING WITH TRUMP’S TARIFFS ON CHINA, CANADA AND MEXICO?

Still, Trump said that conversations between the two countries will now be conducted by Cabinet officials, including Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, according to the post at the time.

Treasury Secretary Scott Bessent discussed global trade and Trump’s tariff plans on “Mornings with Maria” Friday. (Paul Morigi / Getty Images)

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However, the possibility of tariffs resuming is causing popular companies in the United States, like Nissan, to consider actions to avoid higher costs if their production lines are based out of Mexico, China or Canada. Besides the tariffs with Mexico, the White House announced there would be reciprocal tariffs on countries that add a premium to the cost of American goods.

“By making trade more reciprocal and balanced, we can reduce the trade deficit; grow the United States economy; and improve our trade relationships with trading partners to the benefit of American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses,” Trump said in a memorandum on Thursday.

February 16, 2025
Trump announces reciprocal tariffs in Truth Social post amid trade policy overhaul

President Donald Trump wrote a lengthy Truth Social post about his trade policy overhaul on Saturday, emphasizing his plans to charge reciprocal tariffs to countries that the U.S. does business with.

In a post published Saturday afternoon, Trump explained how his reciprocal tariffs will work in a great amount of detail. In recent weeks, he has announced 25% tariffs on all aluminum and steel imports into the U.S., plus 25% tariffs on imports from Canada and Mexico and a 10% tariff on imports from China.

His recent move to implement reciprocal tariffs was decided “for purposes of Fairness,” Trump wrote.

“For purposes of this United States Policy, we will consider Countries that use the VAT [value-added tax] System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” Trump wrote. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted.”

RED STATE AG PROMISES LEGAL FIGHT WITH ICE-RESISTING LOCAL GOVERNMENTS

President Donald Trump speaks to reporters in the Oval Office of the White House, where he signed an executive order, on Thursday, Feb. 13. (AP/Ben Curtis)

Most countries use a VAT system, including the United Kingdom, China and Mexico. Trump added that he will make provisions “for subsidies provided by Countries in order to take Economic advantage of the United States.”

“Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let U.S. businesses operate,” the president added. “We are able to accurately determine the cost of these Nonmonetary Trade Barriers.”

“It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us. There are no Tariffs if you manufacture or build your product in the United States.”

THIRD JUDGE BLOCKS TRUMP BIRTHRIGHT CITIZENSHIP ORDER

President Donald Trump speaks in the East Room of the White House, Wednesday, Feb. 5, 2025, in Washington. (AP Photo/Alex Brandon)

Trump concluded his post by claiming that the U.S. “has been treated unfairly by other Countries, both friend and foe.”

“This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade,” the Republican continued. “America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS”

“I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!”

Earlier this week, Trump promised that U.S. will be “flooded with jobs” as foreign trading partners are incentivized to move their businesses to American soil – despite his tariffs being fiercely criticized in recent weeks.

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President Donald Trump speaks during the National Prayer Breakfast at Washington Hilton, Thursday, Feb. 6, 2025, in Washington. (AP Photo/Evan Vucci)

“They can build a factory here, a plant or whatever it may be, here,” Trump said Thursday afternoon from the Oval Office. “And that includes the medical, that includes cars, that includes chips and semiconductors. That includes everything. If you build here, you have no tariffs whatsoever. And I think that’s what’s going to happen. I think our country is going to be flooded with jobs.”

Fox News Digital’s Emma Colton contributed to this report.

Andrea Margolis is a writer for Fox News Digital and Fox Business. Readers can send story tips to [email protected].

February 15, 2025
Jamie Dimon’s rant, Trump’s tariffs and DOGE cuts

Treasury Secretary Scott Bessent discusses President Donald Trump signing a reciprocal tariff plan, Vice President JD Vance threatening Russia with sanctions, a potential economic partnership agreement with Ukraine and government spending waste.

-Stocks notch weekly gains despite mixed trading Friday

-Treasury Secretary Scott Bessent defends tariffs, after wheeling and dealing with Ukraine’s Zelenskyy

-Trump’s tariffs and reciprocal tariffs explained

-DOGE bulldozing hits Social Security, Federal Reserve next?

-Inflation runs hot…again, as egg prices soar 53%

-Agriculture Secretary Brooke Rollins confirmed, along with Robert Kennedy, Jr. as Health and Human Services Sec.

-JPMorgan CEO Jamie Dimon goes on rant aimed at WFH diehards

-The Big Board is going BIG in Texas. NYSE outlines big expansion

-Two U.S. retailers plan more store closures — a lot of them

-Robot riders will be delivering your next takeout order

STOCKS WIN FOR WEEK: The Nasdaq Composite rose 2.6% for the week, followed by the S&P 500 and Dow Jones Industrials…more on the markets here. Bitcoin was volatile and remains below $100,000…LIVE cryptocurrency prices here.

TOUGH TALK: U.S. Treasury Secretary Scott Bessent defended President Trump’s tariffs in an interview with FOX Business…continue reading here.

UKRAINE ECONOMIC DEAL: We also accompanied Bessent exclusively to Ukraine, where he is working to hammer out an economic deal with Ukraine President Zelenskyy…continue reading here.

RECIPROCAL TARIFFS EXPLAINED: Trump is wielding tariffs fast and furious…continue reading here.

DOGE DEALS: Elon Musk’s Department of Government Efficiency is smashing its way through Washington, D.C., and he claims one Social Security recipient is 150 years old and getting a check…more on the Federal Reserve here. Musk also put the Federal Reserve on notice for an audit, but Chairman Powell fired back…continue reading here.

VIDEO: Elon Musk joins Trump in the Oval Office for some straight talk

INFLATION HOTTER: Consumer prices rose more than expected, a sign inflation is far from under control. Egg prices, for example, posted another startling spike…continue reading here. Many retailers are limiting purchases of this kitchen staple…continue reading here.

CONFIRMED: Health and Human Services Secretary Robert Kennedy, Jr. was confirmed and is promising to Make America Healthy Again…continue reading here. Agriculture Secretary Brooke Rollins also sailed through, to inherit the chicken and egg crisis…continue reading here.

CLAPS BACK!: JPMorgan CEO Jamie Dimon gave employees protesting his return-to-office push an expletive earful…continue reading here.

VIDEO: Listen to Dimon slamming Zooms, texting, Fridays and work from home politics

RETAIL RIP: Two more U.S. retailers announced hefty store closures, including department store chain JCPenney…continue reading here, as well as craft chain Joann…continue reading here.

Y’ALL STREET: The New York Stock Exchange is expanding in pro-business-friendly Texas, following a host of other big companies…continue reading here.

DYING DELIVERY BREED?: Uber is rolling out more robots to deliver your food replacing humans…continue reading here.

VIDEO: See Robot Riders in action

TAX TIPS: WHAT TO KNOW

TAX SEASON 2025: Do this one thing before filing your taxes…continue reading here.

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February 14, 2025
Trump’s Treasury secretary shuts down tariffs concerns, praises ‘frictionless global trade’

Treasury Department Secretary Scott Bessent discusses President Donald Trump signing a reciprocal tariff plan, V.P. Vance threatening Russia with sanctions, a potential economic partnership agreement with Ukraine and government spending waste.

Less than one day after President Donald Trump signed off on a reciprocal tariff plan, the administration’s Treasury secretary shut down any economic concerns around the state of global trade.

“President Trump is serious about negotiating this. And look, I don’t understand why there’s any pushback on this, that if they want to bring all these barriers down, then we will have more frictionless global trade,” Scott Bessent said in an exclusive interview on “Mornings with Maria” Friday.

“As we’ve learned with President Trump, you should take him at his word. This is not theater,” he continued. “The April 1 deadline is for a study that the Commerce Department is doing on global tariffs that apply to U.S. products country by country.”

On Thursday, Trump announced a plan for the U.S. to look at implementing “reciprocal” tariffs against countries that tax or limit markets for American goods. Trump said he did not expect any exemptions or waivers for the plan, which could apply to both adversaries and allies.

TRUMP IS PLAYING A DANGEROUS TARIFF GAME DESPITE HIS ‘REALLY STRONG’ AGENDA, U.S. ECONOMIST WARNS

Commerce Secretary nominee Howard Lutnick and the U.S. trade representative would then submit a report detailing the tariffs on a country-by-country basis, a White House official said, previewing the announcement. The studies will be completed by April 1.

U.S. Treasury Secretary Scott Bessent discussed global trade and Trump’s tariff plans on “Mornings with Maria” Friday. (Getty Images)

The official added that Office of Management and Budget (OMB) Director Russ Vought would then have 180 days to produce a report assessing any financial impacts.

This comes just days after the Trump administration announced 25% tariffs on steel and aluminum imports, and a 10% across-the-board tariff on China last week.

“We’re going to come up with what is the equivalent of an index, what I would call a reciprocal index, country by country, the outstanding tariffs, non-tariff, the trade barriers and currency manipulation,” Bessent explained.

“I’m expecting that we will get this report and we will see how our trading partners choose to respond. But I can tell you that if he needs to, he will implement them,” the Treasury secretary added. “And as he said in the interview yesterday, this can be a big revenue source for the U.S. government.”

U.S. Treasury Secretary Scott Bessent addresses President Donald Trump’s economic and fiscal goals during his first interview on ‘Kudlow’ since joining the administration.

Bessent also responded to widespread criticism from some economists and market experts that tariffs may exacerbate inflation and create extra costs for consumers.

“I think that is a simplified, reductionist view. It’s typical of the old thinking, and it’s the reason the U.S. has been taken advantage of for years and years. It’s the reason we have these gigantic trade deficits. It’s the reason that many of our products aren’t allowed… to be sold abroad,” he said.

“All President Trump wants is for American businesses to have frictionless trade. And I will stand behind our American manufacturers to make the best products at the best price. And they can sell anywhere in the world without these barriers.”

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White House senior counselor for trade and manufacturing Peter Navarro emphasizes the economic importance of DOGE and President Donald Trump’s reciprocal tariff plan on ‘The Evening Edit.’

According to America’s top money manager, accrued revenue from tariffs solely relies on trade partners’ collaboration.

“It’s going to depend on our trading partners’ responses, how quickly they do it, how much they do it over time,” Bessent said. “But I could tell you that these could be very, very substantial if they don’t want to take their tariffs down because we will match them, percent for percent, dollar for dollar.”

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FOX Business’ Greg Norman contributed to this report.

February 14, 2025
Will tariffs reduce trade deficits? Experts weigh in

The Claman Countdown panelists Keith Fitz-Gerald and David Kudla unpack the pressure of tariffs.

President Donald Trump has spent his first few weeks in office rolling out his trade agenda, which has thus far focused on increasing tariffs. Part of that strategy is Trump’s belief that tariffs will help reduce trade deficits.

After his initial announcement of 25% tariffs on Mexico and Canada, Trump said the countries “have to balance out their trade” with the U.S. for him to consider not implementing those tariffs, which are currently delayed until at least March after the two countries announced border security measures.

“We have deficits with almost every country – not every country, but almost – and we’re going to change it,” the president added about America’s broader trade deficit. Trump has also announced higher tariffs on products imported from China and is planning to impose reciprocal tariffs on foreign trading partners after a review that’s expected to conclude by April 1.

In 2024, the U.S. trade deficit in goods grew by 14% in 2024 to reach a record of $1.2 trillion, while America’s trade surplus in services grew 5.4% to $293 billion – leading to a net trade deficit for goods and services of $918 billion last year, up $133 billion from the prior year. With the trade deficit growing and the president aiming to narrow it, FOX Business spoke with expert economists about whether trade deficits are a problem that tariffs can fix.

US TRADE DEFICIT HITS RECORD THAT WILL BE A TRUMP TARGET

President Donald Trump has taken issue with U.S. trade deficits with other countries and touted tariffs as a way to narrow them. (Chip Somodevilla/Getty Images / Getty Images)

Ryan Young, senior economist at the Competitive Enterprise Institute, told FOX Business that people buying goods and services from overseas is because they “value what they get more than the money they give up.”

He added that trade balances don’t “say anything about a country’s economic health, good or bad, it just means a lot of people are making beneficial decisions,” while noting that the U.S. has run trade deficits for more than 50 years.

“The U.S. has run a trade deficit every year since the 1970s, yet living standards are better by almost every measure, whether it’s income, unemployment rate, life expectancy, percentage of low-income households with air-conditioning, internet and other goods, or nearly any other measure. If the trade deficit were harmful, much of what we see all around us every day should not exist,” Young said. “Trump gives a lot of reasons for his tariffs. Trade deficits should not be one of them.”

TRUMP SIGNS RECIPROCAL TARIFF PLAN: ECONOMISTS WEIGH IN ON HOW IT COULD WORK

Scott Lincicome, VP of general economics at the Cato Institute, told FOX Business that Trump’s first term tariffs on China can serve as an example of how they impact bilateral trade between the two countries as well as the overall trade deficit.

“Trump imposed a ton of tariffs on steel and aluminum and on Chinese goods – and the U.S.-China bilateral trade balance did shrink a bit. But the overall U.S. trade deficit didn’t change, as a share of GDP it was basically flat,” Lincicome said, noting that trade deficits with countries like Vietnam grew as the China trade deficit decreased.

President Trump has touted the U.S. dollar’s role as the world’s reserve currency and recently threatened tariffs on countries in the BRICS alliance if they attempt to end that role. However, the dollar’s status also contributes to the trade deficit.

President Donald Trump has signed several executive orders related to trade and tariffs since returning to the White House. (Andrew Harnik/Getty Images / Getty Images)

TARIFFS COULD FACTOR INTO FED’S RATE-CUT PLANS AMID INFLATION CONCERNS, EXPERTS SAY

“The United States can run large trade deficits for a somewhat unique reason, and that is the dollar’s role as the world’s reserve currency,” Lincicome said. “Because the dollar is in demand abroad, that actually increases the dollar’s value… generally, a stronger dollar increases imports and decreases exports.

“So in that case, the trade deficit itself is a symptom of a good thing for the U.S. economy and something Trump likes,” he added.

Steven Kamin, a senior fellow at the American Enterprise Institute who specializes in macroeconomics and international finance, told FOX Business that deploying tariffs as a means of bringing back manufacturing jobs is unlikely to lead to a significant number of jobs being reshored.

“A lot of the destruction of manufacturing jobs was caused by technological change, not by import competition,” Kamin said. “A lot of that basically hemorrhage of manufacturing jobs to very low cost countries like China, like Mexico, was kind of inevitable. We were never going to keep those jobs, and more importantly, imposing tariffs at this point will bring some, but not very many jobs.”

The U.S. has run trade deficits since the 1970s. ((Photo by Qian Weizhong/VCG via Getty Images) / Getty Images)

ECONOMIST OFFERS BIPARTISAN PLAN TO AVOID FINANCIAL CRISIS BY STABILIZING AMERICA’S SURGING NATIONAL DEBT

Kamin also noted that the federal government’s fiscal budget deficit plays a role in contributing to the U.S. trade deficit.

“If you look at the private sector of the United States – households and businesses – they actually earn more than they spend on consumption and investment. So basically, on the whole, our private sector is running a small surplus. It’s the government that’s running a big deficit,” Kamin said. “So if you were serious about reducing the trade deficit, you would reduce the fiscal deficit.”

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“The trade deficit does not matter, the fiscal deficit does matter. The reason for that is because the fiscal deficits lead to higher government debt,” Kamin said. “As that debt grows, it competes with the private sector for borrowing funds and pushes up interest rates. And if that debt grows large enough, interest rates could go sky high – and this is something way far in the future – could lead to a financial crisis.”

February 14, 2025
LARRY KUDLOW: The markets applaud Trump’s reciprocal tariffs

Today, President Donald Trump expanded on his fair and reciprocal trade policy that is aimed at creating a level playing field for American workers and businesses — and will hopefully deal with the many unfair trading practices around the globe that are aimed at the United States.

He is using a simple metric: if you tax us, we’re going to tax you. But, if you lower your tax on us, then we’ll gladly lower our tax on you.

Actually, President Trump sees this as a road to free trade.

And taxes are really tariffs. So, one place the President singled out was the European Union for their nearly 20% value added tax (VAT), which, yes, functions as a tariff.

Plus, they have across the board tariffs that are much higher than ours. On that score, President Trump singled out the 10% European auto tariff, which is four times America’s 2.5%. That’s on top of the 20% VAT. Of course, that’s patently unfair.

And there are country-wide examples galore: India has six times the tariff rates that we do, Mexico three times, China nearly five times, Brazil six times.

President Donald Trump signs new executive orders on reciprocal tariffs from the Oval Office.

The world trading system has been broken for over 25 years. And most countries have taken advantage of America by aiming their trading barriers at us.

There is no international court to fix it. The World Trade Organization is a bust and is also corrupt, in bed with China.

So, President Trump’s going to try and fix this by applying a reciprocal tariff benchmark. It seems like a fairly straightforward metric.

At this point, we don’t know exactly how far the policy will go. Nor do we know how much in tariff revenues will be raised. These are important questions yet unanswered.

In today’s presser, Mr. Trump used a very moderate, low-key approach.

He wasn’t really bashing anybody, and he focused most of his remarks on how the industrial heartland and our whole economy will become bigger and more productive as a result of his reciprocity-based level playing field goal.

Heritage Foundation economist E.J. Antoni, former World Bank president David Malpass, and Sen. Kevin Cramer, R-S.D., weigh in on President Donald Trump’s reciprocal trade policy on ‘Kudlow.’

The stock market rose nearly 400 points on the news. No actions will be taken until April 1st, after a review led by Commerce Secretary Howard Lutnick.

Reporters keep nagging President Trump about inflationary tariffs. But they are wrong.

Foreign exporters will bear the largest burden, because they will be forced to cut their prices in order to sell in America. Plus, the export country currency will fall, while the U.S. dollar will rise.

And, if the European Union – or whoever – lower their tariffs, our consumer prices will go down.

That’s all counter inflationary.

All that said, I strongly support trade reciprocity. It is a noble mission.

Next up, I’d really like to see the President start talking up tax cuts, jobs, middle-class wages, and rapid economic growth.

Let’s not forget the growth message.

February 13, 2025
US will be ‘flooded with jobs’ as foreign nations avoid tariffs, Trump says

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President Donald Trump said the U.S. will be “flooded with jobs” as foreign trading partners move industries to American soil to avoid tariffs.

“They can build a factory here, a plant or whatever it may be, here,” Trump said Thursday afternoon from the Oval Office. “And that includes the medical, that includes cars, that includes chips and semiconductors. That includes everything. If you build here, you have no tariffs whatsoever. And I think that’s what’s going to happen. I think our country is going to be flooded with jobs.”

Trump said U.S. consumers could see prices rise in the “short term” due to the tariffs, but that prices will lower and that industries across the board would benefit.

“And I think the farmers are going to be helped by this very much because product is being dumped into our country and our farmers are getting hurt very badly by the last administration,” Trump said. “The last administration hated our farmers, like, at a level that I’ve never seen before. I think our farmers are going to be helped. Jobs are going to be helped. But our farmers are going to be helped, our manufacturers are going to be helped.”

TRUMP SIGNS ‘RECIPROCAL’ TARIFF PLAN FOR COUNTRIES THAT TAX US GOODS

President Donald Trump said on Feb. 13, 2025, from the Oval Office that the U.S. will be “flooded with jobs” as foreign trading partners move industries to American soil to avoid tariffs. (Francis Chung/Politico/Bloomberg via Getty Images)

“And again, if somebody wants to come in, including the car companies, if they want to come in and build car plants, they’ll do it without tariffs. And therefore, prices won’t go up. There could be some short-term disturbance, but long term, it’s going to it’s going to make our country a fortune,” he added.

FENTANYL’S FINANCIAL GRIP ON US SKYROCKETED TO $2.7T AT HEIGHT OF BIDEN ADMIN: STUDY

Trump announced on Thursday that he will impose “fair and reciprocal” tariffs on all major U.S. trading partners.

The plan includes tapping Howard Lutnick, Trump’s nominee for commerce secretary, to produce a report on reciprocal trade relations within 180 days. Lutnik said Thursday that he will have the report ready for Trump by April 1.

The plan includes tapping Howard Lutnick, President Donald Trump’s nominee for commerce secretary, to produce a report on reciprocal trade relations within 180 days. (Al Drago/Bloomberg via Getty Images)

“On trade I have decided for purposes of fairness, that I will charge a reciprocal tariff – meaning whatever countries charge the United States of America, we will charge them no more, no less. In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple,” Trump said at the White House of the tariff plan.

President Donald Trump said U.S. consumers could see prices rise in the “short term” due to the tariffs, but that prices will lower and that industries across the board would benefit. (Getty Images)

Trump’s reciprocal tariff announcement follows him leveraging tariffs against Mexico, Canada and China earlier in February. The tariffs were created in light of “extraordinary” threats stemming from “illegal aliens and drugs, including deadly fentanyl,” according to Trump’s executive order authorizing the tariffs.

Trump’s order authorized tariffs through the new International Emergency Economic Powers Act. It included 25% tariffs on imports from Canada and Mexico and a 10% tariff on imports from China. Energy resources from Canada would have a lower 10% tariff.

TRUMP IMPOSES TARIFFS ON IMPORTS FROM CANADA, MEXICO AND CHINA: ‘NATIONAL EMERGENCY’

President Donald Trump signed an executive order on Feb. 1, 2025, authorizing tariffs on Mexico, Canada and China through the new International Emergency Economic Powers Act. (Donald Trump 2024 campaign)

Both Canada and Mexico agreed to concessions with Trump the day before the tariffs were set to take effect, pledging to send additional security personnel to their respective borders with the U.S. Trump agreed to pause the tariffs on the two nations for one month in light of the border security concessions.

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China, on the other hand, imposed tariffs on some U.S. imports in response to Trump’s tariffs.

Fox News Digital’s Greg Norman contributed to this report.

February 13, 2025
What could Trump’s reciprocal tariffs look like?

The Lonski Group President John Lonski breaks down President Donald Trump’s economic agenda during an appearance on ‘Varney & Co.’

President Donald Trump on Thursday signed an executive order imposing reciprocal tariffs on U.S. trading partners, effectively raising duties on imports to match those levied on America’s exports.

“Today is the big one: reciprocal tariffs,” Trump wrote on his social media platform, Truth Social, ahead of the announcement. His executive order starts a process that could lead to reciprocal tariffs being imposed within weeks after the White House’s trade and economic team studies America’s trading relationships, an official told reporters on a conference call.

The Trump administration aims to complete its trade review by April 1 and plans to target what it calls the most “egregious” issues first, including countries with large trade surpluses with the U.S. and the highest tariff rates on American goods. The president’s tariffs would match other countries’ higher tariff rates and aim to counter other trade barriers like burdensome regulations, value-added taxes, government subsidies and exchange rate policies and to negotiate with some countries to reduce those barriers.

A new analysis by Goldman Sachs economists led by Jan Hatzius looked at how the reciprocal tariffs could work and found that they would likely increase the average tariff levied on imports to the U.S., though they could help reduce trade uncertainty as well.

TARIFFS COULD FACTOR INTO FED’S RATE-CUT PLANS AMID INFLATION CONCERNS, EXPERTS SAY

President Donald Trump is planning to roll out a plan for reciprocal tariffs on U.S. trading partners. (Jim Watson/AFP via Getty Images / Getty Images)

“If applied at the product-specific level (e.g., the U.S. tariff on cars from the EU would equal the same rate the EU applies on cars from the U.S.), the U.S. weighted average tariff rate might rise by about 2 [percentage points], we estimate. If applied at the country level, the effect could be smaller,” the Goldman economists wrote.

“While a reciprocal tariff policy poses risks, it is also possible that it could incrementally reduce trade policy uncertainty once announced.

VOTERS REJECT TRUMP’S TARIFF PUSH; MOST BELIEVE POLICY WILL HURT ECONOMY

“President Trump’s comments suggest that he views this policy as an alternative to the 10-20% universal tariff he has discussed in the past,” the economists wrote. “If U.S. tariffs are set to match foreign tariff rates, it would theoretically make it less likely that U.S. tariffs would rise substantially further. It might also ultimately lead some trading partners to reduce tariffs (and theoretically a reduction in U.S. tariffs as well).”

They also said there are risks related to reciprocal tariffs in the event the Trump administration attempts to equalize non-tariff barriers (NTBs) to trade, which they note are “difficult to quantify but could result in a greater increase.”

“The main risk is that the Trump administration could consider value-added taxes (VATs) in the calculation, which would raise the average effective tariff rate by 10pp further,” the economists wrote. “However, while President Trump has criticized VATs in some countries, there is no indication at this point that the reciprocal tariff policy he plans to announce would include VATs in the calculation.”

Reciprocal tariffs would equalize U.S. tariffs on imports with those faced by American exporters overseas. (Reuters/Carlos Barria / Reuters Photos)

While the reciprocal tariffs may be the latest step in Trump’s efforts to reshape U.S. trade policy, the report noted that there will likely be further developments as the president’s term progresses.

“Of course, even if President Trump views reciprocal tariffs as an alternative to more sweeping measures at the moment, we are entering only the fourth week of a four-year presidential term, and it seems likely there may be many further tariff announcements even if he does announce reciprocal tariffs this week,” the Goldman economists noted.

TRUMP TARIFFS PROMPT WARNINGS FROM TRADE GROUPS

Tariffs are taxes on imported goods or services. (Reuters/Mike Blake / Reuters Photos)

Kevin Hassett, director of the National Economic Council, told reporters Wednesday “reciprocal tariffs are absolutely a high priority for the president and have been forever” and signaled that discussions about them had begun with foreign trading partners.

“Our trading partners charge us way more in tariffs than we charge them. And it’s something he talked about before, and there’s going to be a lot more action on it today. We even started to have negotiations with other countries,” he said.

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Hassett was asked what the negotiations with other countries have entailed and replied, “We were just laying the groundwork for discussions over reciprocal trade.”

He added that Howard Lutnick, Trump’s nominee to be commerce secretary, led those meetings.

FOX Business’ Kristen Altus and Reuters contributed to this report

February 13, 2025