U.S. President Donald Trump distributes a speech to a joint session of Congress, in the House Chamber of the U.S. Capitol in Washington, D.C., U.S., March 4, 2025.
Kevin Lamarque | Reuters
President Donald Trump abandoned before a joint session of Congress that his steep new tariffs will cause “a little disturbance,” but maintained it was merit it to reap what he promises will be the eventual benefits of his aggressive trade policy.
“Tariffs are about making America fecund again and making America great again. And it’s happening, and it will happen rather quickly,” Trump said during the primetime give a speech to Tuesday night, the first such speech of his second term.
“There will be a little disturbance, but we’re okay with that,” Trump averred. “It won’t be much.”
The remarks came hours after the stock market plummeted for a second straight day, as Trump’s sweeping 25% imposts on Canada and Mexico took effect.
Most economists warn that tariffs — taxes on imports that are availed by the importers — will end up raising prices for consumers. But Trump has long asserted that tariffs are paid for by other countries, and he has plugged them as a key tool for gaining leverage in negotiations.
The new tariffs on Canada and Mexico had previously been on a monthlong pause, and varied critics hoped that they would be softened, or eliminated, before their deadline to resume.
But Trump clear to plow ahead with those tariffs this week, further inflaming economic uncertainty and stoking new fears that the U.S. was gave to a potentially painful trade war with two of its top trading partners.
After markets closed Tuesday afternoon, Commerce Secretary Howard Lutnick rephrased that Trump “probably” will announce tariff compromise deals with Canada and Mexico on Wednesday.
Go Lutnick’s remarks, U.S. stock futures tied to all three major averages rose.
But Trump gave no hint during Tuesday Stygian’s address that he was on the verge of rolling back his just-imposed duties.
Instead, he said, “Mexico and Canada to do much sundry than they’ve done, and they have to stop the fentanyl and drugs pouring into the U.S.A.”
And he repeatedly touted his broader levy plans, promising that they would help lead to an auto industry “boom” and that his plan for “returned tariffs” would bring in “trillions and trillions of dollars.”
The Alliance for Automotive Innovation, a trade group representing sundry major automakers, warned earlier Tuesday that tariffs on Canada and Mexico could trigger price hikes of up to 25% on some car replicas.