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3471President Donald Trump says America is entering a new manufacturing boom, thanks to his sweeping tariff policy aimed at pressuring foreign countries and companies to bring production back to U.S. soil.
But while construction may already be underway in some places, the full rebuild could take up to two years, he said.
“Soon, there will be many, many, plants. All over the country.”
“They start a plant, and they are big plants,” Trump told reporters aboard Air Force One on Thursday. “Take a year and a half to two years.”
He emphasized the importance of timing and scale, saying the goal isn’t just to build small factories, but to establish massive industrial hubs that will reshape entire regions.
Tariffs as Leverage
Trump argued that tariffs give the U.S. strong negotiating power. “The tariffs give us great power to negotiate,” he said.
“Always have. Have used them very well in the first administration. Now we are taking it to a whole new level.”
According to Trump, other countries are now more willing to cooperate with the U.S. on trade deals because of these tariffs.
“If we would have asked some of these countries to do us a favor, they would have said no,” he said. “Now they will do anything for us.”
The plan includes 10 percent tariffs for most countries, and higher rates for what he called the “worst offenders.”
According to Omair Sharif, president of Inflation Insights, the average weighted tariff rate could rise to between 25 and 30 percent—a massive jump from around 2 percent last year.
It’s one of the most dramatic changes to U.S. trade policy in recent memory.
Economists warn that this kind of shock can rattle global markets, especially if countries retaliate with their own tariffs.
Barry Ritholtz, co-founder of Ritholtz Wealth Management, said the big unknown is how trading partners will respond.
“If it’s a trade/tariff tit for tat, this could get much uglier.”
‘Kind Reciprocal’
In a Rose Garden event on Wednesday, Trump called the new tariffs “kind reciprocal,” suggesting that things could be even tougher for other nations if they choose to retaliate.
“This is not full reciprocal,” he said. “This is kind reciprocal.”
The administration has given itself flexibility to raise tariffs further if needed.
A senior official told reporters that the focus now is on getting the current regime in place, with no immediate plans to negotiate lower rates with other countries.
However, as Politico reports, many business leaders say the unpredictability of Trump’s policies is making it hard to commit to new investments.
“Manufacturers are putting these decisions on hold,” said Jay Timmons, head of the National Association of Manufacturers, in a CNBC interview.
A former administration official told Politico the key issue is that companies don’t know how long the tariffs will last, or whether they could change dramatically depending on the outcome of the 2028 election.
“The price needs to be fully inclusive of the tariff risk,” they said.
With such uncertainty, companies may choose to delay or cancel plans to expand in the U.S., even if the long-term policy direction seems clear.
Domestic Build or Pay Up
Trump was clear that businesses can avoid paying tariffs by manufacturing in the U.S.
“There are no tariffs if you build your product in the United States,” he said. “A lot of people are doing that.”
He pointed to automakers as an example, saying several are now shifting production from Mexico and Canada back to U.S. factories.
“I talked to two of the four or five that are really active. They have already started moving their parts.”
Steel production is also making a comeback, according to Trump.
“Steel factories are opening up and expanding at levels people haven’t seen in years.”
“You’ve got to give it a little time,” Trump added. “Soon, there will be many, many, plants. All over the country.”
He also suggested that companies building new facilities could get fast-tracked approvals to build electric generation on-site, making them more energy self-sufficient and attractive for investment.
“The good news is a lot of money for them. They can build them fast,” Trump said.
What’s Next?
The administration says it is focused on implementing the new tariff regime, with discussions about rate adjustments or foreign negotiations on hold for now.
Trump has indicated that once the regime is fully operational, more trade discussions may open up.
“It’s going to be a booming country. A very booming country. It’s going to be amazing, actually.”
Whether that optimism turns into real investment and long-term growth remains to be seen—especially if businesses decide to wait out the uncertainty instead of building new plants now.
For now, the U.S. is betting that tariffs will kickstart a domestic manufacturing revival, even if it takes a couple of years to see the full results.
And Trump, as always, remains confident that his strategy will work, pointing to what he says are massive investment commitments and early signs of progress.
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