President Trump suggested tariffs of up to 300% while encouraging foreign companies to invest in production facilities in the United States. He reiterated his intention to maintain a hard-line trade policy after the midterm elections.
President Trump said tariffs of up to 300% could be imposed if foreign companies do not build factories in the United States, encouraging investment in factories and production facilities there. Citing the protection of domestic industry, he claimed that approximately 3,000 factories and production facilities are being built in the United States.
At a press conference at the White House on the 5th, local time, he repeated his view that removing tariffs would interrupt factory construction, linking incentives for foreign companies to invest in the United States with avoiding high tariffs. He also explained that construction would stop after the tariffs were removed.
He indicated that he intends to maintain the policy even after a defeat in the midterm elections, and said measures including executive orders were being prepared for the next 1–2 weeks. Against the backdrop of his discretion in trade and foreign policy, he reiterated his intention to pursue a hard-line trade policy.
He reaffirmed his longstanding claim that tariffs are a means of rebuilding the manufacturing base and strengthening supply chains, explaining that the aim was to increase employment in the United States and lower prices. The USTR gave an explanation along similar lines, but the investment breakdown combines new establishments and expansions, meaning that the overall increase in investment does not necessarily indicate new facility construction immediately.