PULSE POINTS:

What Happened: President Donald J. Trump has announced new tariffs aimed at promoting fair trade and supporting American workers and businesses. Research shows tariffs boosted the economy in his first term.

Who’s Involved: President Donald Trump, U.S. International Trade Commission, Economic Policy Institute, U.S. steel producers, American consumers.

Where & When: United States, pledge made on the 2024 campaign trail and following President Trump’s inauguration.

Key Quote: “Following implementation of Sec. 232 measures in 2018—and prior to the global downturn in 2020—U.S. steel output, employment, capital investment, and financial performance all improved,” the Economic Policy Institute reports.

Impact: The tariffs resulted in reduced imports, increased domestic production, job creation, and investments in new or upgraded steel facilities.

IN FULL:

For the first time in several decades, the U.S. is poised to redefine its trade dynamics as President Donald J. Trump introduces tariffs aimed at equalizing trade conditions for American industries and American workers. This strategic move, reminiscent of actions taken during his first administration, aims to bolster economic growth.

Research conducted on the impact of tariffs from President Trump’s first term suggests that these measures fortified the U.S. economy. A 2024 study highlighted that tariffs resulted in significant reshoring in sectors such as manufacturing and steelmaking, while a 2023 U.S. International Trade Commission report revealed that tariffs curtailed imports from China and promoted local production.

The report indicated minor downstream price effects, aligning with findings by the Economic Policy Institute, which emphasized that the tariffs did not exacerbate inflation and had a negligible impact on prices overall.

“Following implementation of Sec. 232 measures in 2018—and prior to the global downturn in 2020—U.S. steel output, employment, capital investment, and financial performance all improved,” the Economic Policy Institute stated. This period saw U.S. steel producers commit over $15.7 billion to new or upgraded facilities, generating approximately 3,200 jobs.

A further analysis conducted by the Atlantic Council points to a potential increase in domestic product purchases prompted by tariffs. The Treasury Secretary under the Biden regime, Janet Yellen, supported this stance, stating that consumer prices would not significantly rise as a result of tariffs.

A separate 2024 economic analysis projected that a global 10 percent tariff could stimulate $728 billion in economic growth, create 2.8 million jobs, and lift real household incomes by 5.7 percent.

During President Trump’s first term, tariffs bolstered the iron ore industry in Minnesota, supported thousands of new jobs, led to investments exceeding $10 billion, and decreased steel and aluminum imports by nearly one-third from 2016 to 2020.

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