Trump Threatens Tariffs of Up to 300% on Companies Not Building Factories in US

▲ U.S. President Donald Trump

U.S. President Donald Trump stated on the 5th (local time) that abolishing tariffs would halt foreign companies' factory construction within the United States, warning that companies not building plants in the U.S. could face tariffs of up to 300%.

As attention focuses on whether President Trump will shift his stance on core policies like tariffs and the war with Iran following the Republican Party's crushing defeat in the midterm elections, this remark is interpreted as a declaration of his firm commitment to maintaining his tariff stance by mentioning "300% tariffs."

Speaking with reporters at the White House that day, President Trump was asked how he plans to utilize executive orders over the next two years and what plans he has to preserve his political legacy. He responded, "We will do a great deal. You will see a lot over the next week or two. There is a lot in preparation."

President Trump went on to claim that foreign companies are building some 3,000 factories and production facilities inside the United States, asserting, "If I took the tariffs off right now, every one of those plants would stop construction."

He emphasized, "Ninety-nine percent [of the reason they are building] is because otherwise they would have to pay a 50%, 100%, 150%, 250% tariff," adding, "Once you start building, and once you start operating, you don't pay tariffs."

Repeating that eliminating tariffs would immediately halt factory construction in the U.S., President Trump added, "You'd have half-built factories all over the country, and we'd be bringing products in from China, Japan, South Korea, and the Philippines."

President Trump stressed that once companies build plants and begin operations, they will not need to pay tariffs, and prices will also drop significantly.

He also referred to those advocating for the abolition of tariffs as "foolish people."

While this remark does not differ significantly from his previous stance, it is drawing attention as it came just two days after the Republican Party's crushing defeat in the midterm elections, which was fueled by high inflation caused by tariff policies and the war with Iran.

It is interpreted as practically a declaration that he will stick to his tariff policy regardless of the midterm election defeat.

While "300% tariffs" is likely a signature exaggeration by President Trump, it can also be seen as hinting that substantial additional tariffs could be imposed.

When asked about responses regarding Iran that day, President Trump stated that a decision must be made between an agreement and an attack, saying, "If possible, I don't want to destroy the rest [of Iran], but we may have to."

He also remarked that Iran will not do anything regarding its nuclear program without U.S. approval.

Regarding potential replacement of Defense Secretary Pete Hegseth, he repeatedly drew a line against rumors of a swap, stating, "He is doing a fantastic job."

Concerns are rising that as President Trump's domestic political standing weakens due to the midterm election landslide defeat, he could push aggressively ahead in areas of foreign affairs, national security, and trade where presidential discretion is broad.

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