White House doubles down on tariffs, says they were a massive success in President Trump’s first term

Ahead of tariff announcement by US President Donald Trump, the White House has reaffirmed its stance on tariffs, stating that Trump’s first-term policies strengthened the US economy. It has stated that a 2024 study highlighted that tariffs led to significant reshoring in industries like manufacturing and steel production, contributing to job creation and industrial investment.

Impact on US production and trade

A 2023 report by the US International Trade Commission analysed the effects of Section 232 and 301 tariffs on over $300 billion worth of imports. The study concluded that tariffs reduced imports from China and stimulated US production, with minimal downstream price increases.

Tariffs and inflation concerns

Despite concerns from economists and policymakers, the Economic Policy Institute found no correlation between Trump-era tariffs and inflation. The organisation noted that the tariffs had only a temporary effect on prices and that US steel production, employment, and investment saw significant gains.

Steel industry growth and investment

According to IndustryWeek, the tariffs played a crucial role in bolstering US steel production. Following the implementation of tariffs in 2018, US steelmakers, including Nucor, US Steel, Cleveland-Cliffs, Steel Dynamics, CMC, and AK Steel, invested billions of dollars in at least 16 major projects. Their combined annual investments more than doubled between 2017 and 2019, rising from $1.5 billion to $4.2 billion.

Job creation and wage growth

The White House cited a 2024 economic analysis predicting that a global tariff of 10% would generate $728 billion in economic growth, create 2.8 million jobs, and increase real household incomes by 5.7%. The Atlantic Council also found that tariffs encouraged US consumers to buy domestically produced goods, further stimulating local industries.

Policy endorsements and industry response

Former Treasury Secretary Janet Yellen stated in 2024 that tariffs did not significantly impact consumer prices. Meanwhile, S&P Global noted that Trump’s tariff policies enhanced the financial health of US-based steel and aluminum producers, reinforcing a protectionist stance that strengthened domestic industries.

As President Trump prepares to announce a new wave of tariffs, the administration continues to argue that protectionist policies benefit the US economy.