President Donald Trump defended his trade agenda Tuesday after facing pointed questions from Fox News host Brian Kilmeade about whether a new round of tariffs could slow the U.S. economy.
During an interview on Fox & Friends, Kilmeade asked the president if he was concerned that expanding tariffs on imported goods might create economic challenges as businesses adjust and manufacturers shift more production back to the United States.
The exchange comes as the Trump administration prepares to implement a new tariff plan while markets continue monitoring global economic conditions and instability in the Middle East.
Trump’s temporary 10% global tariff rate is scheduled to expire later this week. Under the administration’s latest trade strategy, many U.S. trading partners will face new tariffs ranging from 10% to 12.5%, affecting a large share of imported products entering the American market.
Kilmeade asked whether those tariffs could weigh on economic growth in the short term.
Trump immediately rejected the idea.
The president argued that tariffs are generating hundreds of billions of dollars in revenue while encouraging manufacturers to invest in the United States instead of producing goods overseas. He said the policy is helping strengthen American industry and creating new opportunities for workers across the country.
Trump pointed to the auto industry as one example, saying companies are expanding production inside the United States because building vehicles domestically is becoming more attractive than importing them.
He specifically mentioned General Motors, saying the company is enjoying a strong year and crediting his tariff policies with helping boost domestic manufacturing.
The president also highlighted investments in semiconductor manufacturing, an industry viewed as critical to both the economy and national security.
According to Trump, some of the world’s largest chip manufacturers are investing billions of dollars in new production facilities in Arizona. He said those projects could dramatically increase America’s share of global semiconductor manufacturing over the next several years while reducing dependence on foreign suppliers.
Trump argued that rebuilding American manufacturing has become one of his administration’s top economic priorities.
He said encouraging companies to build factories in the United States helps create higher-paying jobs, strengthens supply chains, and reduces the country’s reliance on overseas production.
The president also addressed a recent Supreme Court decision that limited one of the legal authorities used to impose certain tariffs.
While acknowledging the ruling requires his administration to use a different legal process, Trump insisted it would not change his commitment to protecting American industries through trade policy.
According to Trump, tariffs have already produced significant economic benefits by increasing federal revenue and encouraging businesses to relocate production to the United States.
The president also argued that tariffs have provided leverage beyond economics.
Trump claimed that the threat of tariffs has helped discourage international conflicts by giving the United States additional negotiating power with foreign governments. He specifically referenced tensions involving India and Pakistan, arguing that economic pressure can be an effective diplomatic tool alongside traditional negotiations.
Another major focus of the interview was the continued expansion of manufacturing in America.
Trump said more companies are choosing to build factories in the United States rather than overseas to avoid paying tariffs on imported products.
As an example, he pointed to Toyota, saying the automaker has announced billions of dollars in new U.S. manufacturing investments instead of expanding production in Mexico.
Supporters of Trump’s trade agenda argue that these investments demonstrate tariffs are succeeding in bringing jobs, factories, and long-term investment back to the United States. Critics, however, continue to warn that higher import costs could eventually be passed on to consumers through higher prices.
Kilmeade later shifted the conversation to the United States-Mexico-Canada Agreement (USMCA), the trade agreement negotiated during Trump’s first term.
When asked whether he planned to renegotiate or update the agreement, Trump suggested it was not a top priority.
Instead, the president argued that Canada and Mexico depend far more on access to the American market than the United States depends on either country.
Trump said the agreement is ultimately more important for America’s neighbors because of the size and strength of the U.S. economy.
The interview underscored one of the biggest economic debates facing the country as Trump’s second administration continues to reshape U.S. trade policy.
Supporters believe tariffs encourage companies to invest in America, expand domestic manufacturing, strengthen national security, and reduce dependence on foreign supply chains. Opponents argue that tariffs can increase costs for businesses and consumers while creating uncertainty in global markets.
With the administration’s latest tariff plan set to take effect soon, the debate over President Donald Trump’s trade policies is expected to remain a major issue for American businesses, workers, investors, and voters in the months ahead.