Copyright © HT Digital Streams Limit all rights reserved. Brian Schwartz, Greg IP, The Wall Street Journal 10 Min Read 04 Apr 2025, 01:21 PM IST US President Donald Trump Remarks on Rates in the Rose Garden in the White House on April 2. (Reuters) Summary The President dreams of reopening factories and villages revived by rates, but shares that have dropped over the fear of economic growth will suffer. While investors and consumers have flashed over the fall out over the past few weeks if President Trump has unleashed a massive trade war, Trump himself continued to look at the past. The rest of the world has been from the US for 40 years, and he told advisors who asked him to articulate his economic vision. It was, he and his advisers would note, an argument he has been conducting on television since the 1980s. Before finishing his second term, he said, he felt he had to correct the injustice. If people complained about the rates he was about to lay up, Trump told his inner circle to remind the public of his view of how the US was once again: a place with flowering main streets and hometowns, where US workers sold US products to the American public. Trump leaned in that vision on Wednesday with his market for the shaking of the market. “Empty, dead sites, falling factories will be knocked down, and brand new factories will be built in their place,” he told an audience that includes members of the United Auto Workers Union. “We’re going to be a very different country.” The rates that Trump announced will lift the average duty above the previous high of 1930. It is by far the most disruptive component of an agenda that can be one of the most disruptive of any new president since the 1930s, one that includes immigration, government spending, taxes and regulations. Perhaps the most striking aspect of Trump’s dramatic movement to reposition the US economy is the timing. The economy he inherited was the envy of the world with a 2.8% growth last year, faster than almost every other major developed economy, an unemployment rate of just 4.1% and inflation of 2.8%. Stock was on record heights. Wall Street assumed that Trump would prioritize growing tax cuts and deregulation while delaying and diluting rates, as in its first term. Instead, Trump decided to apply shock treatment immediately. The economy, he argued, is a sick patient who now needs therapy, regardless of the pain. “The patient lived and is healing. The prediction is that the patient will be much stronger, bigger, better and more resilient than ever before, ‘he wrote on social media on Thursday. Trump’s assistants consider the tariff role as part of a comprehensive program, along with stricter boundaries, lower taxes and less regulation, which will lead to a more self -sufficient economy, where Americans produce more and less imports of what they consume, less work is filled by immigrants, the private sector is freely and the government is less troubled. In that economy, “We are doing much more good in America, high-tech manufacturing, security goods, cars, many more things across the industrial spectrum,” said Stephen Miran, chairman of Trump’s Economic Advisors Council. Less regulation and taxes will make it faster and more flexible to make things in America. “Miran added that families and communities left behind by de -industrialization would benefit.” If you create good work for people, they have an easier time to form a family, marry, have children, find housing, raise the cost of children. ” Independent economists and even Republicans think that Trump’s theory of the economy is wrong and that his trade policies will damage the US poorer and international relations. White House, said Trump made it clear that the US deterioration is not inevitable, but a choice rooted in bad policies that last sets the country. Showed and said, “Every prediction our opponents have made about the trade over the past thirty years has been proven completely wrong.” Still, he has publicly and publicly acknowledged that the implementation of his plan will be disruptive – higher inflation, at least temporarily and an increased risk of recession. Four Seasons in New York on March 31, donors asked vice president JD Vance how rates could affect Republicans in the 2026 congressional election. company control, as Trump has announced a 25% tariff on imported cars. Trump makes policy decisions with his guts after he met with his advisers, Vance told the approximately 20 donors. A spokesman for Vance did not respond to a request for comment. A Ford spokesman confirmed the meeting. Learned in Real Estate Trump’s obsession with trade and rates are strongly influenced by its background in real estate. “From the first time I met him, it was as if he was talking about the development of properties in New York,” recalls Sam Nunberg, who worked for Trump from 2011 to 2015. “He was very well acquainted, he followed the nuances and he knew its history.” Marc Short, staff head of Trump’s first vice president, Mike Pence, and now a critic of the rates, said: ‘The Way [Trump] Would describe it to say … The US market is the largest market, and people need to be charged to have access to it, such as a real estate fee. And we suck not to ask people not to have access to it. ‘Trump has developed this view early as a real estate developer dealing with Japanese investors with deep pockets.’ Forget about our enemies-the enemies that you can’t speak so easily. I would pay our allies their fair share, “Trump told Talk Show’s host in 1988. It’s not free trade. If you ever go to Japan and try to sell something, forget about it … we make it possible for [Kuwait] to sell their oil. Why don’t they pay us 25% of what they make? “The targets of his IRe have changed, from Japan, Kuwait and Saudi Arabia to China, Vietnam and Mexico, but his prescription remained the same: Let them pay for the privilege of selling or defending by the US, and his view was beaten by listening to protectionist television personalities, including Lou Dobbs on CNN and Fox. Schultz on MSNBC, according to Nunberg. Interviewer in Chicago said. “We’re going to bring back the businesses.” Princeton historian Julian Zelizer said Trump’s vision of the economy is fundamentally a nostalgic one. Former Republican Speaker of the House of Representatives Newt Gingrich, in favor of Trump, agreed. sharply increased. [Alexander] Hamilton, who understood that if you did not have rates, the British industry would drown you, ‘he said. Only since Franklin Roosevelt free trade ‘was captured in modern economic thinking’ did he say. In its first term, Trump increased rates significantly, especially on China. Japan, South Korea, Canada and Mexical have acquired all unfinished businesses. ALLERS at his Mar-a-Lago club in Florida said he was from greater scale tariffs by people such as the National Director of Economic Council and the Minister of Foreign Affairs, which they said was his misconceptions about the trade, such as the cost of the tariff, a circular conversation. He came back … and he would say that the countries must pay. ‘Trump’s current team includes skeptics about rates, but unlike in his first term, they don’t try to speak him out of its use. It was indeed a condition to get on board. Trump feels free and can make decisions without much interference, he told his supporters. The demand for efficiency Wednesday confirmed his dedication to rates and prosperity. But the announcement did not explain how the first would lead to the second. Doug Irwin, a trading historian at Dartmouth College, noted that the shifting of car supply chains with Canada and Mexico, some of which dates to the 1960s, will be an expensive, decades lung project. “What all economists know about rates is that it reduces efficiency,” he said. “Is it plausible that we can make all parts of all cars and be just as efficient and offer the same cars at the same prices as when we take advantage of specialization across the boundaries?” Even fans of tariffs say they should be supplemented by investing in skills, research and advanced manufacturing, as the law signed by former President Joe Biden, which directs $ 39 billion to semiconductor manufacturing. Trump wants the law to be repealed, and argues for rates on chips. “Tariffs are a very important part of the puzzle, but I think you also need policy for supply side to rebuild in America,” says Eren Cass, founder of American Compass, a thinking tank that matches Trump’s populist agenda that prefers more manufacturing at home and less immigration. ‘The details and subsequent policists are the way to get things done, and they haven’t done it yet. “Historically, protection companies and workers have made less productive, no longer, by protecting them from competition. Productivity in steel fell by 32% between 2017, the year before Trump first imposed broad rates on imports, and 2023, even as productivity in the broad economy, rose by 15%. to abroad, which puts our steel users to a disadvantage of foreign competitors. have traditionally argued Epublikee, helping to help growth, namely lower regulations, taxes and government spending. “There’s a mosaic,” said Tennessee Senator Bill Hagerty, who was a candidate for Trump’s Treasury Secretary this week. ‘A part of it includes rates. It takes up the headings today, but it also contains taxes … There is also a deregulating effort that is currently underway. ‘The hope is that the disruptive effects of tariffs, deportations and expenditure of spending can soon arise the positive effects of US manufacturing, cheaper energy and lower taxes. The anxiety under business, markets and the public that greeted Trump’s Liberation Day announcement indicates that the needle has become more treacherous. Write to Brian Schwartz on brian.schwartz@wsj.com and Greg IP at Greg.ip@wsj.com Catch all the business news, market news, news reports and latest news updates on live currency. Download the Mint News app to get daily market updates. More Topics #Donald Trump #Tariff Hike Mint Special
A market number attempt to make the US economy always want Trump
