CHICAGO--Republican presidential candidate Donald Trump on Tuesday defended his protectionist trade policies and other fiscal proposals, dismissing suggestions that they could drive up the federal debt, antagonize allies and harm the U.S. economy.
“We’re all about growth. We’re going to bring companies back to our country,” the former president said in a sometimes-tense interview at the Economic Club of Chicago.
The interviewer, John Micklethwait, editor-in-chief of Bloomberg News, cited projections by budget analysts that Trump’s plans would add $7.5 trillion to the federal debt through the year 2035, more than twice that of policies favored by Trump’s Democratic opponent in the Nov. 5 election, Vice President Kamala Harris.
Trump maintained that his trade policies - which call for pricey tariffs on goods not only from rivals such as China but allies such as the European Union - would revitalize American manufacturing and yield enough revenue to ease concerns about ballooning the deficit. "To me, the most beautiful word in the world is 'tariff,'" Trump said.
In a later all-women Fox News town hall event in Atlanta, taped for broadcast on Wednesday, Trump said he would work toward more tax breaks for lower-income Americans."We're going to readjust things so that it's fair to everybody, because it's really not fair to everybody," he said. "It's unfair to some people and we're not going to have that."
Some trade experts have argued Trump's proposed tariffs could damage the U.S. economy, jeopardize jobs and drive up consumer prices. “All you have to do is build your plants in the United States, and you won’t have any tariffs,” Trump said. “I agree it’s going to have a massive effect, a positive effect, not a negative."
Trump reiterated that he would levy a high tariff on vehicles assembled in and imported from Mexico - as high as 200%, he said. And he said he would impose duties on imported cars from countries such as Germany in order to force foreign companies to manufacture their products in the U.S.
When Micklethwait told Trump those efforts might annoy allies the U.S. needs to compete against China, Trump responded by saying, “Our allies have taken advantage of us more than our enemies.”
As president from 2017 to 2021, Trump imposed punitive tariffs on imported washing machines, solar panels, steel, aluminum and goods from China and Europe.
Trump's sit-down with Micklethwait was a departure from typical interviews on his economic plans, which involve more friendly broadcasters, such as Fox News' Maria Bartiromo and Larry Kudlow, who served as Trump's top economic adviser in the White House. A supportive crowd in the room often cheered his comments and booed some of Micklethwait's questions.
Trump appeared to back away from previous comments that as president, he should be able to exert control over the Federal Reserve. "I think I have the right to say I think you should go up or down a little bit," Trump said, referring to setting interest rates. "I don't think I should be allowed to order it, but I think I have the right to put in comments as to whether or not the interest rates should go up or down."
He didn't answer when asked whether he would remove Fed Chair Jerome Powell.
