The Heritage Foundation senior economist Peter St. Onge discusses the Trump administration’s ‘back-up options’ as the Supreme Court ruling on tariffs looms and more on ‘The Bottom Line.’
President Donald Trump credited tariffs for what he called historic economic gains, claiming Thursday that the U.S. has taken in hundreds of billions of dollars with virtually no inflation while strengthening national security.
“Great Financial Numbers were released today,” Trump wrote on Truth Social. “Our Country has never done better! So many people ask me the reason for this, and I tell them, in just one word – TARIFFS!
“We’ve taken in Hundreds of Billions of Dollars, with virtually No Inflation, and our National Security has never been as strong as it is today,” he added. “GOD BLESS THE U.S.A.”
Trump’s post came the same day the United States and Taiwan reached a major trade agreement aimed at reshoring semiconductor manufacturing and strengthening U.S. supply chains, underscoring the president’s long-standing argument that tariffs can be used as leverage to rebuild domestic industry.
US, TAIWAN COME TO $250B ‘AMERICA FIRST’ TARIFF DEAL OVER SEMICONDUCTORS
President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden. (Brendan Smialowski/AFP via Getty Images / Getty Images)
Under the agreement, Taiwanese semiconductor and technology firms will commit at least $250 billion in direct U.S. investment to advance “America First trade and investment,” along with an additional $250 billion in credit guarantees to support supply chain expansion across the U.S., according to the Department of Commerce.
U.S. and Taiwanese officials said the deal is designed to reverse decades of offshoring that reduced America’s share of global semiconductor manufacturing from 37% in 1990 to less than 10% by 2024 – a decline that has raised economic and national security concerns in Washington.
Future U.S. semiconductor tariffs will prioritize Taiwanese companies that build manufacturing operations in the U.S., allowing duty-free imports tied directly to expanded domestic production capacity.
The Taiwan Semiconductor Manufacturing Co. is the world’s leading producer of semiconductors. (Mike Kai Chen/Bloomberg via Getty Images / Getty Images)
Officials said the structure is intended to reward companies that invest in American workers and facilities while discouraging reliance on overseas production.
The agreement also calls for Taiwan to facilitate U.S. investment across several critical industries, including semiconductors, artificial intelligence, defense technology, telecommunications and biotechnology – sectors viewed as vital to both economic competitiveness and national security.
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The Taiwan Semiconductor Manufacturing Company has invested billions in a chip fabrication plant in Arizona. (Rebecca Noble/Bloomberg via Getty Images / Getty Images)
The investment is expected to expand market access for U.S. companies, deepen technological cooperation with Taiwan and strengthen U.S. leadership in critical and emerging industries.
Trump has long argued that tariffs protect American workers, reduce dependence on foreign adversaries and give the U.S. leverage in trade negotiations. While critics have warned tariffs could raise consumer prices, Trump has repeatedly rejected that claim, pointing to economic data he says shows strong growth with limited inflation.
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The Taiwan deal signals that tariffs are likely to remain a central pillar of Trump’s broader trade strategy as his administration pushes to rebuild domestic manufacturing and secure critical supply chains.
FOX Business’ Jasmine Baehr and Eric Revell contributed to this report.
