Trump says tariffs won’t hurt US economy, claims levies will bring ‘hundreds of billions of dollars’ in investments

US President Donald Trump has defended his tariff strategy, saying the latest levies imposed by Washington will not hurt the American economy and will instead attract hundreds of billions of dollars in investments.

Trump, speaking to Fox News on Tuesday, said the tariffs imposed on goods linked to forced labour were an alternative route after the US Supreme Court struck down the levies imposed under the International Emergency Economic Powers Act (IEEPA) earlier this year.

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“No, because it's bringing hundreds of billions of dollars,” Trump said when asked whether the tariffs announced a few days ago would hurt the economy.


Last week, the US Trade Representative imposed tariffs of 10% and up to 12.5% under Section 301 of the Trade Act of 1974 on 60 countries that Washington determined had failed “to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.”

“No, no, the tariffs have, I mean, it's a shame that I have to go a harder way for the tariffs because the Supreme Court in a very close decision, you know, ruled against me,” Trump said.

Trump says tariffs replaced a blocked route

Defending his trade policy, Trump said the tariffs had benefited the US economy and created incentives for companies to invest domestically.

“Now, I have other ways of doing the same thing, but it's a more cumbersome, you know, way of doing it. But the tariffs have made this country a fortune. It made the country rich,” the US President said.

Trump also claimed that the threat of tariffs had helped prevent several conflicts around the world, including tensions between India and Pakistan.

“The threat of tariffs stopped India and Pakistan from going into a nuclear war,” Trump said, referring to Operation Sindoor.

India launched Operation Sindoor on May 7 last year, targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir in response to the Pahalgam terror attack that killed 26 civilians in April 2025. The strikes led to four days of intense military clashes between the two countries.

India has maintained that the understanding on cessation of hostilities with Pakistan was reached after direct talks between the Directors General of Military Operations of the two militaries.

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Trump points to GM, chip plants and Toyota investment as tariff wins

Trump also cited his visit to a General Motors plant in Michigan on Monday while arguing that tariffs had strengthened American manufacturing.

“They have the best gear. They have the most trucks, the most cars. The tariffs have saved General Motors. What I've done to the auto business, what I've done to the chip business, we have chip companies now building hundreds of billions of dollars worth of chip plants,” he said.

“These tariffs, it's the greatest thing. And only the really smart people or the people that are non-political and that get it talk about it,” Trump said.

Trump further claimed that companies were moving production to the US to avoid tariff costs.

“Toyota just left Mexico. They're building, they just announced, they're building USD 12 billion worth of plants in the United States, all because they want to avoid tariffs. They have no tariffs if they build their product here,” Trump said.