'Remove tariffs and foreign firms won't build here,' Donald Trump says

Vows to press ahead with tariff policy despite midterm losses

'You'll see a lot in one or two weeks,' president warns

A daily briefing on Trump news that moves global markets and asset prices — from Wall Street's closing bell to the key developments shaping the world economy.

US President Donald Trump holds up a proclamation designating the White House Oval Office as a national monument, which he signed Thursday (local time). [Reuters]
US President Donald Trump holds up a proclamation designating the White House Oval Office as a national monument, which he signed Thursday (local time). [Reuters]

US President Donald Trump said Thursday (local time) that eliminating tariffs would cause foreign companies to stop building factories in the United States, warning that firms that do not set up manufacturing operations in the country could face tariffs as high as 300 percent.

The remarks came amid expectations that Trump, despite the Republican Party's crushing midterm defeat, would continue to wield sweeping influence in areas where presidential discretion is broad — particularly diplomacy and trade. The 300 percent tariff threat was widely interpreted as a declaration of intent to hold firm on his tariff policy.

Speaking to reporters at the White House, Trump was asked how he planned to use executive orders over the next two years and what steps he would take to preserve his political legacy. "We're going to do a lot of things. You're going to see a lot in one week, two weeks. There's a lot being prepared," he said.

Trump then said foreign companies are building more than 3,000 factories and production facilities across the United States, adding that if he were to scrap tariffs now, "all of these factories would stop being built." He said 99 percent of the reason companies are building in the US is to avoid tariffs of "50, 100, 150, 250 percent," and stressed that once a factory breaks ground and begins operation, the company no longer has to pay tariffs.

Trump repeatedly insisted that removing tariffs would immediately halt factory construction across the country. Driving home the case for his tariff policy, he said that without it, "you'd have half-built factories all over the country" and the US would end up importing products from China, Japan, South Korea and the Philippines — the opposite of his administration's goal of making American manufacturing great again.

Trump also said that once companies build factories and start operating them, not only would they be exempt from tariffs, but prices would fall sharply. He dismissed those calling for tariffs to be scrapped as "foolish people."

The remarks drew particular attention because they came just days after Trump acknowledged that the Republican midterm defeat was partly caused by high inflation stemming from the war with Iran. The comments amounted to a declaration that he would press ahead with his tariff policy regardless of the election outcome.

The "300 percent tariff" figure is widely seen as characteristic Trump hyperbole, but some analysts say the comment nonetheless signals the possibility of significant additional tariffs — even if not quite that high.

Political circles had previously warned that Trump, his domestic standing weakened by the midterm drubbing, could go on a "mad dog" rampage — acting erratically and without restraint in areas where presidential discretion is greatest, such as foreign policy, security and trade. His remarks lent weight to those concerns.


kate01@heraldcorp.com