Trump agrees that his sweeping tariffs are risky

President Donald Trump acknowledged Wednesday that his sweeping tariffs carry political risk but said he will not rush trade deals to calm nervous investors.

During a NewsNation Town Hall meeting moderated by Bill O’Reilly, Trump was asked whether the duties he has threatened on foreign goods suffer from a “perception problem.” 

“Yeah,” he replied. “But I’m an honest guy, and we have to save the country.” The president conceded the strategy could cost Republicans control of the House of Representatives in the November midterm elections, yet insisted he will press ahead. “I just think that I’ll be able to convince people how good this is,” he said.

The remarks followed a Bureau of Economic Analysis estimate showing the U.S. economy shrank at the start of the year for the first time since 2022. The report cited a flood of pre-tariff imports and lower federal spending. An ADP Research release the same morning said April hiring fell short of forecasts, jolting Wall Street.

Many investors want quick movement on trade, but Trump told viewers he is “in less of a hurry” than the market. He said tentative understandings exist with South Korea, Japan and India, though he warned announcements will not come overnight. “We are sitting on the cat bird seat. They want us. We don’t need them,” he declared, later adding that India wants to “make a deal so bad.”

In China, Trump said there is a “very good chance” of an accord, but only “on our terms and it’s got to be fair.” When O’Reilly suggested confirmed agreements could spark a stock rally, the president replied the pacts were “potential deals,” adding, “that’s OK, it can wait two weeks.”

Trump admitted his tariff playbook is tough to explain because he often opens with the hardest line, then pulls back. “You can’t just be hard line, and I’m going to run right through a wall and I’m never going to go over it or around it, I’m going to go straight — you have to be able to dodge and move,” he said.

Officials are reassuring Wall Street that talks are on track

US Trade Representative Jamieson Greer told Fox News that an initial batch of agreements is “weeks and not months” away. “I would say that we have deals that are close,” Greer said. He emphasized he was talking about a “first tranche” of trade pacts, not the full agenda.

Greer said negotiations with India are not “finish line close,” though he speaks regularly with New Delhi’s lead envoy. He expects to meet South Korean counterparts “pretty soon,” describing those talks as “going in the right direction.” 

On Thursday, he plans sessions with Japan, Guyana and Saudi Arabia, followed by a meeting with representatives from the Philippines. Administration officials have said that Asian partners who engaged early could see their agreements announced first.

The trade envoy also called newly elected Canadian Prime Minister Mark Carney a “serious person” and said his office is ready to engage once Carney visits Washington.

Trump spent part of the day defending his economic record and blaming the GDP slide on former President Joe Biden. “This is the Biden economy,” he told dozens of business leaders at the White House before adding, “We’ve had a lot of things happen since November 5.”

Executives from General Electric, Hyundai Motor, Toyota Motor, Johnson & Johnson, Eli Lilly, Nvidia, and SoftBank attended the event, which highlighted capital spending in Trump’s first 100 days in office. 

The S&P 500 has fallen more than 8 percent since Inauguration Day, and consumer confidence in April fell to a near five-year low. Still, Trump argued his tariffs are fueling an “unprecedented surge” in domestic manufacturing.

“Every new factory and every new job created is a sign of strength in the American economy and a declaration of confidence in America’s future,” he said as the meeting wrapped up.

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