Trump defends tariffs, floats $2,000 dividend
Washington: President Donald Trump on Tuesday defended his tariff policy, saying it helped cut US trade deficits and could fund direct payments to Americans.
At a White House news conference marking one year since his return to office, Trump said tariffs were a key reason the US economy was performing strongly. “It’s because of tariffs and the proper use of tariffs,” he said.
Trump claimed trade gaps had narrowed sharply. “We have a 62 per cent reduction in our trade deficit,” he said. He later said the deficit had been cut by “77 per cent in one year.” He rejected warnings that tariffs fuel inflation. “Everyone said tariffs would cause inflation,” he said. “We have very little inflation.”
The president said tariffs pushed companies to build factories in the United States. He said businesses were choosing domestic production to avoid import duties. “Plants are being built all over the country,” Trump said. He also cited what he called “$18 trillion in commitments for new investments.”
Trump raised the idea of sending money back to the public using tariff revenue. Asked about $2,000 rebate checks, he said it was possible. “We’ll be able to issue at least a $2,000 dividend,” he said. Trump added that he believed Congress might not be needed. “I don’t think we would have to go the Congress route,” he said.
He said any payments would likely be subject to income limits. Trump also said tariff revenue could be used to reduce government debt. “We have so much money coming in from tariffs,” he said.
Trump acknowledged a legal challenge to his tariff authority now before the US Supreme Court. He said an adverse ruling could complicate the issue. Even so, he defended tariffs as vital to security and revenue. “We have tremendous national security because of tariffs,” he said.
The president also referred to new global trade deals, including an agreement between the European Union and South American countries. He said the US was no longer being “ripped off” in trade.
Trump again linked tariffs to manufacturing jobs. He warned that without them, foreign competitors would dominate key industries. “If we didn’t have tariffs, you wouldn’t have any car dealers,” he said.
For India and other exporting nations, Trump’s comments suggest US trade policy will remain tough. Tariffs and trade pressure are likely to stay central to Washington’s economic strategy during the remaining three years of the Trump Administration.