President Donald Trump defended his tariff policies on Tuesday by meeting with the executive directors of the largest companies in the country, including many whose market value has fallen in recent days because the fears of recession and inflation have affected the confidence of consumers and investors.
The Republican president spoke to about 100 executive directors at a regular meeting of the Round Business Table in Washington, an influential group of executive directors who lead important US companies, among which is Apple, JPMorgan Chase and Walmart.
Trump met with executives from technology companies at the White House on Monday.
Trump said that the increase in tariffs on many imports, which has shaken world markets and cause sales of shares, will have a tremendously positive impact on time.
“Tariffs will lose a lot of money to this country” and will tempt foreign companies to build plants in the United States, he said.
So far, Trump’s economic policies have focused on a wave of tariff advertisements. Some levies have already entered into force, while others have been delayed or expected to enter into force later.
Trump said the tariffs will correct the imbalance in commercial relations, will restore jobs in the country and stop the flow of illegal narcotics from abroad.
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Intensified the growing commercial war with Canada, promising to duplicate 50% tariffs that would go into force in a matter of hours on all steel and aluminum products imported from the neighbor of the northern United States.
The White House later announced that the tariff would remain at 25% after Canadian officials agreed to initiate conversations.
Markets have been scared of the perspective that tariffs can raise prices for companies, promoting inflation and undermine consumer confidence, which represents a blow to economic growth.
US actions extended on Tuesday the sales wave last week that has dragged the S&P 500 reference index a 3.6% less from Trump’s election in November last year and 5.3% so far from 2025.
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“The markets are going to go up and down, but do you know what? We have to rebuild our country, ”Trump told reporters. “Some will do large businesses buying shares, bonds and everything they are buying.”
Investors fear that Trump’s commercial policies can cause economic slowdown. Meanwhile, a survey conducted with US households showed that consumers are increasingly pessimistic about their perspectives.
Trump had already imposed an additional tariff of 20% to Chinese products entering the United States and 25% tariffs on imports from Canada and Mexico, although he suspended most tariffs on US residents until April 2, when he plans to reveal a global regime of reciprocal tariffs to all commercial partners.
Trump said last month that policies could cause “some short -term pain” before generating long -term benefits.
In an interview with Fox News broadcast on the weekend, he refused to predict whether his economic policies would cause a recession. “I don’t see her at all,” Trump said Tuesday regarding a recession.
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Until recently, investors were optimistic that Trump’s policies would tend to stimulate greater growth, for example through lower taxes, or relieve inflationary pressures, for example relaxing regulation on the production of fossil fuels.
But tax cuts need the approval of Congress and some economists believe that plans to increase deportations of undocumented immigrants will increase pressure on prices in the labor market, while the reduction of the Federal Work Force could increase unemployment.
“I think that if we all become a little more nationalists – and I don’t say that is something bad, you know, it resonates – that will generate high inflation,” said Blackrock executive director Larry Fink, at a conference of the industry on Monday.
Goldman Sachs Group analysts have cut their US growth forecast by 2025 and have raised their inflation forecast, “both factors due to more adverse alleged tariffs.” The forecast is still positive for the year.
Last week, the Business Defense Group asked to make Trump’s tax cuts permanent and advance with the regulatory reform in the energy, infrastructure and manufacturing sectors, areas of wide alignment with the Trump administration.
But the group also urged “negotiators to redouble efforts to ensure a path to follow that quickly eliminates recently implemented tariffs. These tariffs, especially if they are durable, run the risk of creating a serious economic impact. ”
The group said that the White House and Congress should preserve the benefits of the North American Free Trade Agreement with Mexico and Canada signed during Trump’s first mandate.
With Reuters information
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