Tariffs Work — and President Trump’s First Term Proves It

Whitehouse.gov ^ | April 2, 2025 | The White House

[SoConPubbie]

For the first time in decades, the United States will see fair trade as President Donald J. Trump announces tariffs to level the playing field for American workers and businesses.

Despite the rhetoric from politicians and the media, studies have repeatedly shown tariffs are an effective tool for achieving economic and strategic objectives — just as they did in President Trump’s first term.

• A 2024 study on the effects of President Trump’s tariffs in his first term found that they “strengthened the U.S. economy” and “led to significant reshoring” in industries like manufacturing and steel production.

• 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.

• 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.
  • Economic Policy Institute: “Following implementation of Sec. 232 measures in 2018—and prior to the global downturn in 2020—U.S. steel output, employment, capital investment, and financial performance all improved. In particular, U.S. steel producers announced plans to invest more than $15.7 billion in new or upgraded steel facilities, creating at least 3,200 direct new jobs, many of which are now poised to come online.”

• An analysis by the Atlantic Council found that “tariffs would create new incentives for US consumers to buy US-made products.”

• Former Biden Secretary of the Treasury 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.”

• A 2024 economic analysis found that a global tariff of 10% would grow the economy by $728 billion, create 2.8 million jobs, and increase real household incomes by 5.7%.

• President Trump’s first term steel tariffs led to thousands of jobs gains in the metal industry, along with wage increases.
  • The tariffs were hailed as a “boon” for Minnesota’s iron ore industry, with state officials crediting them for bolstering the local economy.

  • Steel and aluminum imports drastically decreased during President Trump’s first term, falling by nearly one-third from 2016 to 2020.

  • The tariffs led to a wave in investment across the United States, with more than $10 billion committed to build new mills.

• The Hill: “The Trump tariffs keep working, to the consternation of many economists”

• S&P Global: “Global Trade At A Crossroads: Trump Tariffs Forge Better Credit Quality For U.S.-Based Steel And Aluminum Producers With A Protectionist Stance”

• IndustryWeek: “Tariffs Are Keeping US Steel Production Strong”
  • “With steel imports down, America’s steelmakers have started investing at home. In addition to Nucor and US Steel, companies like Cleveland-Cliffs, Steel Dynamics, CMC, and AK Steel have invested billions of dollars in at least 16 major new projects throughout the nation. The top five US steel companies more than doubled their total annual investments between 2017 to 2019, from $1.5 billion to $4.2 billion.”

Predictably, the media was wrong.

• PBS (2018): “Trump tariffs may imperil a delicate global economic rebound”
  • “President Donald Trump’s announcement Thursday that the United States would impose heavy tariffs on imported steel and aluminum — with some countries potentially exempted — suddenly raised a fear that few had anticipated: That U.S. tariffs could trigger a chain of tit-for-tat retaliation by America’s trading partners that could erupt into a full-blown trade war and possibly threaten the global economy.”

• NPR (2018): “Trump Plan To Impose Tariffs on Steel, Aluminum Raises Trade War Fears”
  • “Chad Bown, an economist and trade specialist, says the tariffs will drive up the price of steel and aluminum for the multiple other industries that use the metals. Those industries actually employ more people than the steel and aluminum sectors, he says, ‘so this is a really big concern, just from an economic perspective.’”

• The New Yorker (2019): “Trump’s Trade War Could Make the Trump Recession a Reality”
  • “What we do know for sure is that, the longer Donald Trump persists in his trade war, the greater the chances are of an outright slump developing.”

• Politico (2018): “Trump blasted at home and abroad for plan to impose steel, aluminum tariffs”
  • “President Donald Trump’s decision to impose tariffs of 25 percent on steel imports and 10 percent on aluminum reverberated across the world Thursday, spurring retaliatory threats from some of the nation’s closest allies and sending stock prices plummeting on investors’ fears of the global economic fallout.”

[Sequoyah101]

Not enough fire trucks in the world for damage control of this mess.

[SoConPubbie]

Not enough fire trucks in the world for damage control of this mess.

Go sit in the corner and suck your thumb and let the adults h handle this!

[Sequoyah101]

You? Another expert in global finance and economics?

If there were any in sight. I think we are past something these adults can handle.

[Sequoyah101]

Trust us. We’re from the government. We’re here to help you.

[dp0622]

ROFLMAO!!!!

There so many, many, many times bigger this time around with so many, many, many more countries involved.

The nasdaq by the end of today will have lost over 25 percent of its value.

Alomst EVERY economist says this is catastrophic..but FR folks with their advanced finance degrees know better!!

Napkins and washing machine and folding chairs are gonna save america!! we’ll be making them left and right! :)

There were no job shortages, plenty of revenue and just awful spending habits.

Our future lies in robotics, AI, digitial assets and tech, period.

Dreamers see 90,000 factories coming back...or 9000.

I can’t wait to be proven completely wrong, trust me.

But until then, I will be scarce around here or I wil get the boot.

Because I think this may be an extremely bad idea and I dont want to go against the grain too much.

I DO HOPE I am wrong and the COMPLETE WIPING OUT OF EVERY SENIOR’S 401K WAS WORTH IT.

Yes, the market will come back...in time for the oldest who need it most? Who knows?

ciao

[SoConPubbie]

My guess is that you are invested in the stock market?

[SoConPubbie]

Trust us. We’re from the government. We’re here to help you.

You're invested, probably deeply, in the stock market as well, correct?

[Drago]

In light of PDJT’s 1st term “USMCA” trade agreement with Canada and Mexico...(replaced “NAFTA”), I am still trying to figure out the tariff we just put on Canada....was it Fentanyl and illegal border crossings? (Both very minimal and not mentioned by the administration any more). Or is it the tariffs that Canada has on American goods? Those tariffs were negotiated/approved and praised by President Trump under his “USMCA” agreement 6 years ago. Kinda strange “mixed messages”.

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement

https://trumpwhitehouse.archives.gov/briefings-statements/remarks-president-trump-united-states-mexico-canada-agreement/

https://trumpwhitehouse.archives.gov/briefings-statements/remarks-president-trump-usmca-celebration-american-workers-warren-mi/

[SMARTY]

Right, the fire brigade is working on the mess Joe and Co. left behind!

[EQAndyBuzz]

“My guess is that you are invested in the stock market?”

I am and I lost 25% of my portfolio since Wednesday. I was trying to retire at 65 and now it looks like I will have to wait until either I am 70 or my portfolio returns to the point I was at early last week.

I fully understand what Trump is trying to do. However, I’m not to confident this was well thought out about who will be hit the hardest. Families have assisted living payments, that run anywhere between 4-10 thousand a month and they just lost a quarter of their retirement money.

[Fury]

Re: 11 - you do know there are multiple posters that say that such people should have prepared better, or some near-term pain is necessary?

[Fury]

Re: 10 - oh please. EVERY President - Ever since the early ‘70’s - has led the U.S. into this, along with a compliant Congress who has forgotten it is the First Branch.

I’ll make a prediction - the next Congress will have ample majorities to reassert itself.

[EQAndyBuzz]

“Re: 11 - you do know there are multiple posters that say that such people should have prepared better, or some near-term pain is necessary?”

I was prepared. I also understand near term pain. However there is a tipping point and we are rapidly approaching it. Plus, selling now would destroy me financially so I need to hold my securities and hope the market reverses course.

[SMARTY]

Hysteria doesn’t work for me

[Fury]

I agree.

We shall see.

I believe I am on solid ground in saying that what is happening on Wall Street will be affecting Main Street in short order.

[SMARTY]

The media is very hard at work to assure just that. By now, most of America has learned to see THEIR agenda as indistinguishable from the DNC!

The ‘Signal’ story didn't pan out for them so they started on tariffs. The President had tariffs on the agenda from the get go, but the media is only NOW beating it into the ground with a stick

[Fury]

Yes, agreed.

There are real world effects from the selling on Wall Street and I think this has registered with President Trump if you read his post on TS this morning.