*

Trump eyes high tariffs on imports from allies and rivals

*

Analysts say Trump plans could add $7.5 trillion to

federal debt

by 2035

*

Trump backs away from suggesting control over Federal

Reserve

(Adds Trump comments on tax cuts from Fox town hall in

paragraphs 6-7)

By James Oliphant

Oct 15 (Reuters) - Republican presidential candidate

Donald Trump on Tuesday defended his protectionist trade

policies and other fiscal proposals, dismissing suggestions that

they could drive up the federal debt, antagonize allies and harm

the U.S. economy.

"We're all about growth. We're going to bring companies back

to our country," the former president said in a sometimes-tense

interview at the Economic Club of Chicago.

The interviewer, John Micklethwait, editor-in-chief of

Bloomberg News, cited projections by budget analysts that

Trump's plans would add $7.5 trillion to the federal debt

through the year 2035, more than twice that of policies favored

by Trump's Democratic opponent in the Nov. 5 election, Vice

President Kamala Harris.

Trump maintained that his trade policies - which call for

pricey tariffs on goods not only from rivals such as China but

allies such as the European Union - would revitalize American

manufacturing and yield enough revenue to ease concerns about

ballooning the deficit.

"To me, the most beautiful word in the world is

'tariff,'" Trump said.

In a later all-women Fox News town hall event in Atlanta,

taped for broadcast on Wednesday, Trump said he would work

toward more tax breaks for lower-income Americans.

"W­­­e're going to readjust things so that it's fair to

everybody, because it's really not fair to everybody," he said.

"It's unfair to some people and we're not going to have that."

Some trade experts have argued Trump's proposed tariffs

could damage the U.S. economy, jeopardize jobs and drive up

consumer prices.

"All you have to do is build your plants in the United

States, and you won't have any tariffs," Trump said. "I agree

it's going to have a massive effect, a positive effect, not a

negative."

Trump reiterated that he would levy a high tariff on

vehicles assembled in and imported from Mexico - as high as

200%, he said. And he said he would impose duties on imported

cars from countries such as Germany in order to force foreign

companies to manufacture their products in the U.S.

When Micklethwait told Trump those efforts might annoy

allies the U.S. needs to compete against China, Trump responded

by saying, "Our allies have taken advantage of us more than our

enemies."

As president from 2017 to 2021, Trump imposed punitive

tariffs on imported washing machines, solar panels, steel,

aluminum and goods from China and Europe.

Trump's sit-down with Micklethwait was a departure from

typical interviews on his economic plans, which involve more

friendly broadcasters, such as Fox News' Maria Bartiromo and

Larry Kudlow, who served as Trump's top economic adviser in the

White House.

A supportive crowd in the room often cheered his comments

and booed some of Micklethwait's questions.

Trump appeared to back away from previous comments that as

president, he should be able to exert control over the Federal

Reserve.

"I think I have the right to say I think you should go up or

down a little bit," Trump said, referring to setting interest

rates. "I don't think I should be allowed to order it, but I

think I have the right to put in comments as to whether or not

the interest rates should go up or down."

He didn't answer when asked whether he would remove Fed

Chair Jerome Powell.

WEIGHING IN

The interview covered a wide range of topics beyond the

economy, with Trump characteristically refusing to directly

answer some questions, changing the subject, indulging in

extended tangents and criticizing Micklethwait.

Asked if he had spoken with Russian President Vladimir Putin

since leaving the White House, Trump said: "I don't comment on

that, but I will tell you that if I did, it's a smart thing. If

I have a relationship with people, that's a good thing, not a

bad thing."

He did not respond directly when asked if the U.S. would

defend Taiwan if it were invaded by China.

"The reason (China is) doing it now is they're not going to

do it afterward," he said.

Asked if he would try to break up tech giant Alphabet's

Google, Trump suggested it was "rigged" against him and said,

"I'd do something."

Trump again defended his actions in the wake of the 2020

election and refused to say whether he would accept the 2024

election results and agree to a peaceful transfer of power

should he lose.

He insisted there was a peaceful transfer of power after his

2020 loss, shrugging off the events of Jan. 6, 2021, when his

supporters stormed the U.S. Capitol to halt certification of the

election. Four participants died during the chaos and five

police officers died afterward, some by suicide.

"It was love and peace and some people went to the Capitol

and a lot of strange things happened there," Trump said.