Trump Touts Tariffs as Way to Boost US Manufacturing, Wall Street Temporarily Rattled

The U.S. stock market fell again on Tuesday. The Dow lost 478 points amid tariff concerns. However, President Trump is touting tariffs as a way to bring back American manufacturing and boost the economy.  

Speaking to about 100 CEOs from America's largest companies, President Trump said America now has a new, business-friendly climate.

"Hundreds of billions of dollars is being invested," he said. "That wouldn't have happened if I didn't win the election, number one. And I think number two, the tariffs are having a tremendously positive impact. They will have. And they are having."

Wednesday, a 25% tariff on steel and aluminum imports from Canada and the European Union takes effect, which White House Press Secretary Karoline Leavitt said is welcome news to American manufacturers.

"Our steel and aluminum industries have actually applauded these tariffs because again, they know it's going to grow their industry here," she said. "It's going to allow them to export more steel that is made right here in the United States with American workers."

In response to the tariffs, the EU threatened countermeasures that will go into effect April first, but added they are open to negotiation.

Ontario's Premier, Doug Ford, announced a 25% surcharge on electricity exports to the U.S.  However, President Trump said if that happens, the tariff on Canadian metal would rise to 50%.  After that, Ford suspended the proposed surcharge.

"Threats going back and forth, tit for tat," he said. "I've agreed to suspend temporarily, and we always have that tool in our, our tool kit until we sit down over the next day or two. I'll be heading down to Washington."

Some economists say tariffs trigger what stock market investors hate most: uncertainty.

"Businesses really don't know what the policy is, where it's going, what's being tariffed, what's not being tariffed, and it's frustrating," Steven L. Skancke, Ph.D., Chief Economic Advisor at Keel Point, told CBN News. "And when they don't understand, what they tend to do is they just pull back, they come out of the market."

Speaking to reporters outside the White House on Tuesday, President Trump said the stock market will rebound.

"Some people are going to make great deals by buying stocks and bonds and all the things they're buying," he said, adding the U.S. is not headed for a recession. "I don't see it at all. I think this country's gonna boom."