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The director of the White House National Economic Council said Sunday that President Trump’s tariffs might raise the cost of some imported goods but not by as much as has been suggested, adding that the tariffs’ overall impact will benefit American workers and the nation.
Kevin Hassett said the baseline tariffs Mr. Trump imposed on all imports — and the heftier levies slapped on select nations — are pushing foreign countries to seek new trade agreements with the United States that will be better for American workers and ultimately stabilize prices.
“I don’t think you are going to see a big effect on the consumer in the U.S.,” Mr. Hassett said on ABC News’ “This Week.” “There might be some increase in prices.”
Mr. Trump rolled out the tariffs Wednesday, describing it as “Liberation Day” for the nation. The president said the U.S. has been taken advantage of by countries that tap into U.S. spending power, only to shut their markets to American producers.
The move rattled Wall Street. The stock market tanked, triggering concerns that Mr. Trump is pushing the U.S. and the world toward a global recession.
Federal Reserve Chair Jerome Powell said the trade war will lead to “higher inflation and slower growth.”
The financial services firm JPMorganChase said the global recession risk had climbed to 60% from 40%.
Meanwhile, China and Canada responded with tariffs on U.S imports, escalating the trade war.
Larry Summers, who served as Treasury secretary under President Bill Clinton, said it is “almost inevitable” that the tariffs will lead to high inflation and lower growth.
“This is the biggest self-inflicted wound we have put on our economy in history,” Mr. Summers said.
He said American consumers will feel the financial pinch and expects more turbulence in the global markets because of the tariff-induced uncertainty.
“We have never seen anything like this before,” Mr. Summers said on “This Week.” “We are not going to get the things the president is promising.”
Mr. Trump told Americans to “hang tough” on Saturday.
“China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly,” Mr. Trump posted on X. “We have been the dumb and helpless ‘whipping post,’ but not any longer. We are bringing back jobs and businesses like never before. Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!”
Mr. Trump predicted the markets and the country are going to “boom.”
The market fell after Mr. Trump imposed a 10% tariff on most imports, a 25% tariff on foreign cars, and higher tariffs on other countries, including China.
Mr. Trump insists it is a great time to invest in the United States and that his moves to rebalance global trade are long overdue.
The president also shared Friday on social media a video that says he is purposely trying to crash the stock market to force the Federal Reserve to lower interest rates.
On Sunday, Mr. Hasset said Mr. Trump respects the independence of the Federal Reserve and the administration is “not trying to tank the market.”
“It is not a strategy for the markets to crash,” he said. “It is a strategy to create a golden age in America for the American worker.”
English (US) ·