President Donald Trump conceded before a joint session of Congress that his steep new tariffs will cause “a little disturbance,” but maintained it was worth it to reap what he promises will be the eventual benefits of his aggressive trade policy.
“Tariffs are about making America rich again and making America great again. And it’s happening, and it will happen rather quickly,” Trump said during the prime-time address Tuesday night, the first such speech of his second term.
“There will be a little disturbance, but we’re OK with that,” Trump said. “It won’t be much.”
The remarks came hours after the stock market plummeted for a second straight day, as Trump’s sweeping 25% tariffs on Canada and Mexico took effect.
Most economists warn that tariffs — taxes on imports that are paid by the importers — will end up raising prices for consumers. But Trump has long asserted that tariffs are paid for by other countries, and he has touted them as a key tool for gaining leverage in negotiations.
The new tariffs on Canada and Mexico had previously been on a monthlong pause, and many critics hoped that they would be softened, or eliminated, before the deadline.
But Trump decided to plow ahead with those tariffs this week, further inflaming economic uncertainty and stoking new fears that the U.S. was committed to a potentially painful trade war with two of its top trading partners.
After markets closed Tuesday afternoon, Commerce Secretary Howard Lutnick said Trump “probably” will announce tariff compromise deals with Canada and Mexico on Wednesday.
Following Lutnick’s remarks, U.S. stock futures tied to all three major averages rose.
But Trump gave no hint during Tuesday night’s address that he was on the verge of rolling back his just-imposed duties.
Instead, he said, “We need Mexico and Canada to do much more than they’ve done, and they have to stop the fentanyl and drugs pouring into the USA.”
And he repeatedly touted his broader tariff plans, promising that they would help lead to an auto industry “boom” and that his plan for “reciprocal tariffs” would bring in “trillions and trillions of dollars.”
The Alliance for Automotive Innovation, a trade group representing most major automakers, warned earlier Tuesday that tariffs on Canada and Mexico could trigger price hikes of up to 25% on some car models.
