US Wants to Make Tanks, not T-Shirts, Says President Trump

US President Donald Trump softened his stand on international trade and tariffs on Sunday, 25^th May, 2025. He said that US wants to make technology products and tanks, and not T-shirts and sneakers. Speaking to reporters, he said, “We are not looking to make sneakers and T-Shirts. We want to make military equipment. We want to make big things. We want to do the AI thing with computers.”

US President’s latest comments implicitly espouse theory of comparative advantage

President Trump’s comments yesterday showed some reversal from his earlier stand on tariffs and trade. He added further, “ I am not looking to make T-shirts to be honest. I am not looking to make socks. We can do that very well in other locations. We are looking to do chips and computers and lots of other things and tanks and ships.”

These comments may also imply that President Trump is now espousing the established comparative advantage theory of international trade. This theory says that companies should manufacture and export those goods only in which they have a comparative advantage. They should import those goods in which they do not have a comparative advantage. These comments from the US President would bring major relief to world economy and markets.

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