I Asked ChatGPT What the Point of Trump’s Tariffs Are: Here’s What It Said
Written by
Peter Burns
Edited by
Molly Sullivan
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On April 2, President Donald Trump declared it Liberation Day and revealed a long list of tariffs that would be levied against other countries. Tariffs are charges that a government places on goods or services entering its country, and the day after Trump’s initial tariff announcement, stocks plunged, reaching the worst day in the past five years. This opened the gates for a torrent of in-person arguments and online debates where people tried to figure out the administration’s plan.
Everyone has different opinions about the reasons behind tariffs. To get a unique perspective on the topic, GOBankingRates posed the question “What is the point of Trump’s tariffs?” to OpenAI’s ChatGPT. Here are the five points that the chatbot responded with.
Reducing the US Trade Deficit
ChatGPT began its reasoning with this first point: “Trump argued that the U.S. was losing money through large trade deficits, particularly with countries like China. Tariffs were intended to make foreign goods more expensive, encouraging Americans to buy domestically produced products and thus reducing imports.”
Trade deficits are the negative difference in a trade partnership between two countries. Countries that import more products and services than they produce and export can also spend more than they make in trade. Looking back, the U.S has had a trade deficit each quarter except for one in 1976. Implementing massive tariffs may cause U.S. consumers to think twice about what they buy and reverse the trend.
Protecting American Industries
Putting tariffs in place may reignite some of America’s waning industries. According to ChatGPT, “By imposing tariffs on imported goods (like steel, aluminum, and washing machines), the administration aimed to protect American manufacturers and workers from cheaper foreign competition — especially in industries viewed as vital to national security or economic health.”
A month before Liberation Day, Trump had already imposed 25% tariffs on steel and aluminum imports to protect these industries. Multiple groups, including the Steel Manufacturers Association, Aluminum Association, American Iron and Steel Institute and Renewable Fuels Association, cheered the move, hoping it would drive more American businesses to shy away from imported materials.
Pressuring China on Trade Practices
During Trump’s first term between 2016 and 2020, a trade war between the U.S. and China took place. During this period, Trump took actions to launch investigations into the potential theft of U.S. intellectual property and levied several tariffs on Chinese goods.
ChatGPT pointed out that China is still a big tariff target for Trump: “A major focus of Trump’s tariffs was on China. The tariffs were used as leverage to push China to:
- Stop alleged intellectual property theft
- End forced technology transfers
- Open Chinese markets more fully to U.S. companies
- Reduce state subsidies to Chinese firms
This was part of a broader strategy to ‘decouple’ or reduce reliance on China.”
Those who tuned into Trump’s 2024 campaign shouldn’t be surprised that he continues to take a shot at China’s trade practices. Trump pledged to put at least 60% tariffs on all Chinese imports. While both sides initially went back and forth on rising tariffs, they agreed to de-escalate the new trade war and reduce tariffs for 90 days in May 2025.
Revitalizing Domestic Manufacturing
Over the years, the U.S. has become more dependent on other countries to manufacture goods. ChatGPT made the following statement: “Trump hoped that higher costs for foreign products would lead companies to move production back to the U.S., boosting domestic jobs and factory activity.”
In 1979, domestic manufacturing in the U.S. peaked, with 25% of the private sector, or 19.5 million workers, in the industry. Today, the manufacturing sector accounts for only 8% of jobs. Because of this decline, boosting U.S. manufacturing and pushing companies to build factories in the U.S. has been another aim of the Trump administration’s tariffs.
Political Messaging
The final point that ChatGPT gave as a reason for these tariffs is that it caters to Trump’s fan base. ChatGPT said, “Tariffs fit into Trump’s ‘America First’ platform. They were a tangible way to show action on economic nationalism and to appeal to voters in manufacturing-heavy states like Pennsylvania, Michigan and Ohio.”
When he campaigned, Trump not only promised to place tariffs on China, but he also hinted at a 10% to 20% tariff hike on all trade partners. By implementing the tariffs, Trump kept a promise to his base.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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