Tuesday afternoon, US President Donald Trump answered questions from reporters. It is his responsible conviction that tariff proposals brought forth by his administration will increase government revenues and create jobs. Trump sought to reassure the business community by reiterating that the tariffs will take effect on April 2. He thinks these tariffs will pay for infrastructure and reduce taxes. These remarks underscore his faith in making tariffs a strategic economic weapon.
In fact, one of the things Trump pointed out during that briefing was that Mexico and Canada have stepped up to the plate. But at the same time, he raised alarms over the European Union (EU), calling its trade terms with the US “unfair.” For all this bold commentary, Trump didn’t go into much depth when it came to his beliefs on the EU’s alleged trade violations.
Beyond talking about tariffs, Trump highlighted seismic shifts in international relations — whether he recognized it or not. He said that he has seen happy progress in negotiations from Russia and Ukraine, particularly on a maritime ceasefire. He disclosed that the US is far advanced in negotiations with both countries. On both counts they have been extremely successful in advancing solutions both in Ukraine and the wider Middle East region.
The President also previewed a major business announcement set for the next day, though who or what that might be was not revealed. This announcement has the potential to transform the landscape of the US economy. Currently, business and consumer sentiment surveys are gauging its path. Later this week, we’ll get the release of the Core Personal Consumption Expenditures (PCE) index. This major inflation gauge preferred by the Federal Reserve will provide important context to understand our current economic state.