The Unexpected Driver of America's Economic Revival: Trump's State of the Union Tariff Assertion
President Trump’s State of the Union portrayed tariffs as the main engine of the current economic recovery. The policy, initiated in his first term, targets China, the EU and neighboring countries to shield U.S. manufacturing. Section 301 duties remain largely in force, with limited exemptions, while critics warn of price hikes and retaliation. Manufacturing output rose about 7 % and the goods trade deficit fell roughly 8.5 % after the tariffs were imposed. Protected‑sector employment climbed 5‑6 % but consumer prices for affected goods rose near 8 %, keeping overall inflation moderate. Economists stress that tax cuts, deregulation and infrastructure spending also contributed, making isolation of tariff effects difficult. Steel and aluminum firms see higher utilization and new investment, whereas industries dependent on imported parts face higher costs. Agriculture suffered an export dip from retaliatory duties, partially offset by subsidies and new trade deals. Future growth will depend on policy consistency, global demand and technological change.
