Trump: Imposing tariffs will boost US economic growth and demand more influence on the Federal Reserve

US Republican presidential candidate Trump defended his plan to comprehensively reform the US economy through drastic tariff increases and more direct negotiations with the Federal Reserve, saying that although some people predict that his agenda will fuel inflation and cause a surge in treasury bonds, his policies will bring about significant growth.

In an interview at the Economic Club of Chicago (Economic Club of Chicago) on Tuesday, Trump told Bloomberg News editor-in-chief John Micklethwait (John Micklethwait): “This will have a huge impact, a positive impact.”

During the hour-long exchange, Trump repeatedly refuted economists' predictions that his policies would have a net negative impact on the economy and pass the costs on to American consumers.

The former president avoided the possibility that his proposed tariffs could disrupt the supply chain or squeeze small businesses, saying companies would quickly move production back to the US to avoid taxation.

He believes that the impact of his plan to deport millions of undocumented immigrants will be offset by legal immigration. He also said that his leadership would inspire loyalty rather than anger in allies.

“Our goal is growth,” Trump said. “We want to bring the company back to our country.”

Federal Reserve

Trump said that if he returns to the Oval Office, he will pursue many unconventional strategies during his first term, including seeking greater influence in the Federal Reserve.

Although the former president avoided the question of whether he would seek the dismissal of Federal Reserve Chairman Powell, he said that the president told the central bank governor how he thought it was fair to change interest rates.

Trump said, “If you're a very sensible and good president, you should at least be able to talk to him,” adding that he doesn't think the president should be able to force change.

Trump also mocked the management of the Federal Reserve.

“It's the best job in the administration,” Trump said. “You go to the office once a month and say 'let's throw a coin, 'and then everyone talks about you like a god.”

federal deficit

Trump also refuted the campaign's long-standing concerns about the federal deficit, arguing without evidence that his entire economic program would exceed taxpayer costs.

The former president vowed to actively pursue a deregulation campaign, extend the expiring tax cut, cut the corporate tax rate from 21% to 15%, and provide new tax cuts and preferential policies to promote the development of the domestic manufacturing industry — policies that have been hailed by prominent Wall Street and business leaders.

But these proposals would cost trillions of dollars and could further worsen the US federal deficit, which has reached its highest level in history. Some investors are betting that Trump's policies will burden the US with more debt and cause inflation and interest rates to rise.

America's annual deficit is close to $2 trillion.

Trump is trying to offset some of the costs by threatening full tariffs on America's allies and rivals, including a 60% tariff on goods imported from China and a 10% tariff on the rest of the world.

Trump said the tariffs would “greatly” help prevent products from other countries flooding the US, thereby threatening key industries such as the automobile industry.

But the economist says tariffs are unlikely to generate the revenue he needs. The Peterson Institute for International Economics (Peterson Institute for International Economics) estimates that tariffs can increase revenue by more than 200 billion US dollars a year. According to estimates, the US fiscal revenue for the 2024 fiscal year was 4.9 trillion US dollars.

Trump has refuted these predictions, saying that the questioner simply “misunderstood” the impact of the tariffs.

He said, “We will evolve. The only solution is to threaten tariffs.”

Unconfirmed assertions

From false claims about the number of undocumented immigrants convicted of murder, to claims that cheating was the main culprit in his defeat to Biden in the 2020 election, many unproven assertions or lies surfaced from time to time during Trump's campaign.

On the immigration issue, Trump acknowledged that business owners were concerned that his proposed immigration raids would reduce the labor supply, but he said he would replace these immigrants with legal immigrants.

“I want a lot of people to enter our country, but I want them to enter legally,” Trump said.

During his first term, Trump proposed an immigration policy that reduced the number of immigrants entering the country and prioritized highly skilled workers. Economists warned that this could affect industries that currently rely on immigrant labor.

Attack on the Reichstag

Trump and his allies said that if the election process is fair, he will accept the 2024 election results. This raises concerns that the January 6, 2021 scene will be repeated. At that time, Trump supporters stormed the US Capitol to try to prevent certification of Biden's victory.

Trump dodged questions about whether he would commit to respecting the peaceful transfer of power, defended his actions during the attempted rebellion, and pointed out that he left the White House at the end of his term.

Trump said, “I left the morning I was supposed to leave, I went to Florida, and you had a very peaceful handover.”

Trump implied, without evidence, that people other than his supporters were responsible for the violence at the Capitol. He said “a lot of strange things happened” and generally downplayed the violence.

According to the Ministry of Justice, more than 1,400 people have been charged in connection with this incident.

Trump also said that Ashli Babbitt (Ashli Babbitt) was the only one to die on January 6 of that year. She was a supporter and was shot while trying to enter a blocked door in the Capitol. A bipartisan Senate report found that at least seven people died in the riots.

American Steel Corp., Google

Trump expressed his views on some major business events at the forum, reaffirming his promise that if the $14.1 billion deal sold by American Steel to Nippon Steel Corp. (Nippon Steel Corp.) is completed after he takes office, he will block the deal.

He said, “I think this sets a terrible tone. Steel is a critical national security interest.”

Trump said, “There are companies you have to own.”

Both Biden and Harris expressed opposition to the deal, which was also a hot topic in the election, particularly in the swing state of Pennsylvania, where both the American Steel Company and the Federation of Steel Workers (who also opposed the agreement).

Also, when asked if the Justice Department should seek to forcibly disband Google, Trump was reluctant to make a commitment. He said that while he thought something should be done to make the search engine “fairer,” Alphabet probably didn't need to split all parts of it.

“They're really bad for me,” Trump said.

The Justice Department is weighing whether to disband Google as a remedy after a landmark court ruling found that Google had a monopoly on the online search market.

In August of this year, Trump called on his supporters to stop using the Google search engine, referring to billionaire Elon Musk (Elon Musk) and other supporters claiming that the Google search engine interfered with their efforts to find information about the former president.

Trump's relationship with Putin

In response to questions raised by journalist Bob Woodward (Bob Woodward) in his new book, Trump declined to say whether he had spoken to Russian President Vladimir Putin since leaving office in 2021.

Trump said, “OK, I'm not commenting on this, but I'm going to tell you that if I do it, it's a smart thing to do. If I'm friendly with people, if I'm in a relationship, that's a good thing, not a bad thing.”

Woodward quoted a former presidential aide who asked not to be named in his book, saying that he had talks with Putin as many as seven times since leaving office. The Trump campaign called Woodward's statement a “made-up story.”

Trump defended their relationship, saying their positive relationship was a boon for America, and he nurtured relationships with Russian leaders even though he sanctioned the Nord Stream 2 pipeline between Russia and Europe.

Trump and Harris have been stepping up their efforts to promote economic information, especially in battleground states that may decide the November election.

Asked which states he will be watching on election night, Trump said Pennsylvania or Michigan could eventually prove decisive.

Pointing to early voting data, Trump said, “Judging from the votes we have received so far, we have done a very good job.”