Donald Trump has warned tariffs on the US’s biggest trading partners will cause “a little disturbance”, as he vowed to push ahead with his sharply divisive domestic agenda in a combative speech to Congress.
In the first major policy speech of his second term, the president doubled down on his decision to impose 25 per cent tariffs on Canada and Mexico, and an additional 10 per cent levy on China.
“Tariffs are about making America rich again, and making America great again,” he said. “It’s happening, and it will happen rather quickly.”
Trump’s address comes amid mounting evidence that businesses and consumers are concerned about the effect of tariffs, which are likely to disrupt supply chains and send the costs of some goods higher.
Wall Street stocks have wiped out all of their post-election gains as hopes Trump’s policies would drive stronger growth have turned to worries about the trajectory for the world’s biggest economy.
“There will be a little disturbance, but we’re OK with that,” he said.
Trump also insisted so-called “reciprocal” tariffs on goods from a wide range of countries would be imposed on April 2.
The more than 90-minute speech, delivered to a palpably divided chamber in which several Democrats held signs of protest, caps a dramatic six weeks in which Trump has unleashed an aggressive agenda to reshape US trade and foreign policy and impose sweeping changes across the government.
To raucous applause from Republicans, Trump declared: “America’s momentum is back. Our spirit is back. Our pride is back, our confidence is back. And the American dream is surging, bigger and better than ever before.”
Trump used the speech to underscore his muscular approach to foreign policy, insisting he would “get” Greenland, the Arctic island that is part of Denmark and which he has repeatedly said he wants to take over, “one way or another”.
However, he struck a more conciliatory note on Ukraine, noting he had received an “important letter” from Ukraine’s President Volodymyr Zelenskyy on Tuesday indicating Kyiv was ready to negotiate a peace deal with Russia and sign a pact on US access to its critical minerals.
Trump’s comments marked a dramatic shift in tone just days after a White House meeting with Zelenskyy devolved into acrimony, threatening to derail talks on a settlement with Russia and raising alarm across European capitals.
The US president said Zelenskyy had pledged to come to the “negotiating table as soon as possible” to bring “lasting peace closer”. He added Ukraine’s leader was ready to work under Trump’s “strong leadership” and would sign the minerals deal at a time that was “convenient” for the US.
“I appreciate that he sent this letter, [I] just got it a little while ago,” Trump said. “Simultaneously, we’ve had serious discussions with Russia and have received strong signals that they are ready for peace. Wouldn’t that be beautiful?”
The deeply partisan address to Congress was mainly focused on Trump’s domestic priorities, including the spending cuts being implemented by the billionaire Elon Musk and the president’s crackdown on immigration.
Trump credited Musk and his team for slashing government costs and cutting grants and loans that sustain programmes from foreign aid to medical research.
“Thank you, Elon. He is working very hard. He didn’t need this. We appreciate it,” Trump said, adding his administration would “reclaim power from this unaccountable bureaucracy”.
Trump also pledged to balance the federal budget, while insisting he would press ahead with planned tax cuts.
He launched several attacks on Joe Biden, his predecessor, blaming him among other things for the surge in egg prices this year, which has been driven by avian flu infections.
Trump also described Biden’s Chips Act, which funded $39bn in subsidies and tax breaks to promote chip production in the US, as a “horrible thing”.
He said Taiwan Semiconductor Manufacturing Company had this week agreed to invest another $100bn in manufacturing facilities in the US to avoid being the target of tariffs in a deal that he said had not required financial incentives from Washington.
In a quip to Mike Johnson, the Republican Speaker of the House, who was sitting behind him, Trump said: “You should get rid of the Chips Act and whatever is left over, Mr Speaker, you should use it to reduce debt or any other reason you want.”
Trump’s speech was interrupted early on by heckles from Democrats in the chamber. “You have no mandate to cut Medicaid,” shouted Texas Democrat Al Green repeatedly, referring to a healthcare insurance programme for low-income households.
Green was subsequently removed from the chamber. Trump later quipped that there was “absolutely nothing I can say to make [Democrats] happy”.
Additional reporting by Joe Miller, Alex Rogers, Demetri Sevastopulo and Stefania Palma in Washington