President Donald Trump defended his administration’s tariff policies during a meeting with top business leaders on Tuesday, insisting that the trade measures would benefit the US economy despite growing concerns from corporate executives and investors.
His remarks came as stock markets continued their recent decline, with fears over recession and inflation mounting.
Trump addressed about 100 CEOs at the Business Roundtable, an influential group representing major US companies, including Apple, JPMorgan Chase, and Walmart. The gathering followed a private White House meeting with technology executives the previous day.
During the public portion of the event, Trump remained defiant in his stance on tariffs, dismissing concerns about market instability. He suggested that tariffs could increase even further, stating:
“The tariffs are going to be throwing off a lot of money for this country. It may go up higher.”
Executives in the room largely remained neutral in their responses, though some chuckled when Trump made an offhand remark about disliking certain attendees.
In a closed-door session later in the meeting, Trump reportedly assured CEOs that his administration would work to speed up regulatory approvals and lower corporate tax rates to 15% for companies manufacturing in the US.
The meeting took place against the backdrop of volatile financial markets, as investors reacted to Trump’s evolving trade policies. In recent weeks, the president has implemented new tariffs on Canadian, Mexican, and Chinese goods, with $1 trillion worth of imports now subject to duties.
On Tuesday, Trump announced a doubling of tariffs on Canadian steel and aluminum to 50%, only to later scale them back to 25% following discussions with Canadian officials. These rapid reversals have contributed to market uncertainty.
Trump downplayed the ongoing stock market decline, saying:
“Markets are going to go up and they’re going to go down, but you know what? We have to rebuild our country.”
Despite this reassurance, business leaders privately expressed concerns about the lack of predictability in Trump’s trade policies. The Business Roundtable has previously warned that long-term tariffs could harm economic growth and increase inflationary pressures.
The uncertainty surrounding tariffs has complicated decision-making for companies. Some executives fear that new trade barriers will drive up costs for businesses, slow investment, and put pressure on consumer spending.
Larry Fink, CEO of BlackRock, noted that rising economic nationalism could contribute to higher inflation. Meanwhile, some economists predict that deportation policies and federal workforce reductions may further disrupt the labor market.
Market analysts are also skeptical about Trump’s promised tax cuts and deregulation, noting that congressional approval is needed for major fiscal policy changes. Energy firms, for example, remain cautious about scaling up production despite regulatory rollbacks.
While Trump has consistently touted tariffs as a tool to boost domestic manufacturing and correct trade imbalances, business leaders remain cautious. Some industry experts worry that the unpredictability of trade policies could stifle economic growth in the long run.
White House officials have dismissed concerns about market losses, describing them as a temporary adjustment. However, the ongoing sell-off has left investors and executives searching for greater clarity on the administration’s economic strategy.
With input from Reuters and the Washington Post.
