President Trump on Sunday predicted that America will enjoy a tariff-induced manufacturing renaissance the likes of which “this country has never seen,” starting in the next six months to a year.
The president, pointing to recent announcements such as Toyota’s plans to invest $10 billion in the US, said his tariff policy would spur a manufacturing boom.
“I say it’s the golden age of America, when these factories and plants open up by the thousands,” Trump gushed during his remarks at a Christmas reception in Cross Hall.
“They’re coming from Germany, they’re coming from Japan, they’re coming from Canada. Many factories are coming in because there’s they don’t have, they don’t want to pay tariffs,” he said. “We have an age that’s coming up, the likes of which… this country has never seen.”
Trump has dealt with lackluster economic news in recent months. For example, joblessness edged up from 4.3% to 4.4% in September, according to the Bureau of Labor Statistics.
Manufacturing activity in the US also declined for nine months in a row by the end of November, the Institute for Supply Management estimated.
The Federal Reserve on Wednesday slashed its interest rate target by .25% to between 3.5% and 3.75% amid a softer-than-expected job market. The Fed is also juggling concerns about inflation.
Despite those headwinds, Trump was bullish that the economy will pick up next year.
“I just look so forward to the results,” the president said. “You’re going to see results in six months to a year. I think you’ll see results. We’ve never had anything like it.”
Treasury Secretary Scott Bessent has echoed Trump’s optimism that the economy will bounce back next year.
“I think we are going to see a substantial acceleration in the economy in the first, second quarter,” Bessent told Fox News’ “Sunday Morning Futures” last month. “We’re already seeing on many prices.”
Some economists have blamed this year’s economic turbulence on uncertainty over tariffs, a policy that the Trump administration has frequently made drastic changes to in the past year, creating uncertainty for businesses trying to make long-term plans.
After Trump finished implementing his “Liberation Day” tariffs, the administration has signaled that it has largely finished its major adjustments to the protectionist policy.
Still, there is uncertainty over whether the US Supreme Court will reject the legal justification for the bulk of Trump’s tariff agenda. A decision from the high court is expected by June.
Read the full article here
