Trump Insists on Tariffs Despite Stock Market and Economic Downturn

"US economy in transition period... we're doing big things"

"Building a strong nation... can't just focus on the stock market"

US President Donald Trump has indicated his willingness to proceed with tariffs even at the risk of an economic downturn in the United States. He also made it clear that if companies don't want to pay tariffs, they should build factories in the US and create jobs.

In an interview with Fox News on the 9th (local time), when asked if he anticipated an economic recession, President Trump responded, "There will be a transition period (for the US economy)," adding, "because what we're doing is very significant." He also suggested that building a strong economy requires time and that he cannot constantly worry about the stock market.

"No tariffs if you manufacture in the US"

Regarding the recent stock market decline in New York, President Trump clearly stated, "My job is to build a strong nation." Therefore, he added, "We shouldn't worry too much about the stock market."

He explained his reasoning by comparing US and Chinese policies. President Trump pointed out, "China has a long-term perspective of 100 years," while "the US looks at things quarterly and moves quarterly." This is interpreted as expressing his urgency that the US cannot defeat China by creating economic policies with a short-term perspective that focuses on economic slowdowns, recessions, or stock market corrections.

President Trump emphasized, "What we're doing (tariff policy) is building a tremendous foundation for the future." He also said, "We no longer build ships," but "(with the tariff policy) Honda, Toyota, and others are coming to the US, and the world's best semiconductor company (TSMC) has agreed to invest $200 billion."

When the host asked, "Are you saying build (factories) here?" he reaffirmed his policy stance by saying, "Build them here. Then there are no tariffs."

"Reciprocal tariffs will increase"

President Trump also mentioned that reciprocal tariffs could increase over time. When asked whether there could be additional changes following the reciprocal tariffs on April 2, he responded, "Some tariffs will probably go up depending on the situation," adding, "I don't think they will go down."

Regarding the one-month exemption for automakers after implementing 25% tariffs on Canada and Mexico, he said, "I wanted to help US automakers until April 2," and clarified that "from April 2, everything will be reciprocal."

President Trump firmly stated, "We have been cheated for a long time," and "We will no longer be cheated on tariffs." He emphasized that while the US has imposed relatively low tariffs on imported goods, other governments have charged expensive taxes on American products.

Steel and aluminum tariffs starting from the 12th

Meanwhile, US Commerce Secretary Howard Lutnick announced in an interview with NBC News on the same day that tariffs on steel and aluminum would begin on the 12th.

When asked to answer 'yes or no' whether the 25% tariffs on steel and aluminum would take effect from the 12th as President Trump had already announced, he replied "yes." He said tariffs on Canadian lumber and dairy products would be imposed on the 2nd of next month, when reciprocal tariffs begin.

When asked about concerns that imposing tariffs would fuel inflation, Secretary Lutnick questioned, "Will there be (market) distortions?" before acknowledging, "Yes, foreign products may become a bit more expensive." However, he stated, "American products will become cheaper," adding, "You will help Americans by buying American products."

When asked if the tariff plans for Canada and Mexico were permanent, Secretary Lutnick said, "If fentanyl stops, this will disappear," and "If fentanyl doesn't stop or if the president isn't confident about it, it will remain."

New York=Park Sin-young, Correspondent nyusos@hankyung.com