‘$18 Trillion Entering US Economy’: Trump Defends Tariffs, Signals More Relief Amid US Inflation Concerns

Last Updated:December 10, 2025, 10:09 IST

US President Donald Trump hailed tariffs at a Pennsylvania rally, calling them his “favourite word” and crediting them with boosting farmers and national revenue.

US President Donald Trump. (Image: AFP)

The White House last month reduced tariffs on selected imports, including beef, tomatoes, bananas and coffee, as rising grocery prices and voter frustration mounted. US President Donald Trump has now signalled he is open to expanding these exemptions.

“Sure, and I’ve done that already with coffee," Trump said in an interview with Politico when asked about his future economic plans. “They’re very small carveouts, it’s not a big deal."

Despite this, he framed the adjustments as tactical rather than a retreat from his overall tariff strategy.

More goods may get tariff relief

Trump explained that while some tariffs may be reduced, others could be increased to maintain leverage over trade partners. “On some.. and on some, I’ll increase tariffs," he said during a conversation with Politico, highlighting the tension in his US economic policy by easing inflationary pressure on essential goods while continuing to use tariffs as a political and geopolitical tool. 

Trump said the return of car companies to the US and the growth of domestic chip production as outcomes of his tariff measures.

He also highlighted his broader economic record. He claimed that $18 trillion is entering the US economy, attributing the growth to his tariff policies. “Biden had less than a trillion for four years… our country was falling apart," Trump said.

He further cited a deal with Intel, asserting that a government intervention brought in $40 billion and boosted chip production in the United States. “We had a … we had a monopoly in the world. We had everything. And because we had presidents that either weren’t smart or didn’t have business sense or their people didn’t do a good job … they could’ve kept that. We could’ve kept the chip market. We had 100 percent of the chip market, Intel, all of these guys. You know, there’s the thing. They came in to see me, Intel. They needed something to be done by the government. I said, I’m gonna do it, but I think you have to give us 10 percent of your company. You know what happened? We made $40 billion on that deal. The price went through the roof. The United States … in about 10 minutes, I made $40 billion. Nobody talks about that," said Trump.

While small exemptions like those for coffee and bananas offer relief to American consumers, Trump made clear that any benefit would be counterbalanced by tariffs elsewhere. His statements also show his continued belief in tariffs as a central tool of economic and political influence, even as specific exemptions offer temporary relief for US consumers.

The US president also acknowledged that his tariff powers may be limited in the near future. The Supreme Court is reviewing the constitutionality of many of his recent tariffs, a ruling that could affect the use of levies in foreign affairs.

Trump’ favourite word is ‘tariff’

Meanwhile, Trump on Tuesday told a Pennsylvania rally that his “favourite word is tariff," claiming it is making farmers richer and bringing “hundreds of billions, really trillions" into the country.

News world ‘$18 Trillion Entering US Economy’: Trump Defends Tariffs, Signals More Relief Amid US Inflation Concerns

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